Chiara
Mon Jul 01 2024
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5 answers
1714
Are bonds always $100?
I'm curious to understand the pricing mechanism behind bonds. Is it always the case that bonds are priced at $100? I've heard of bonds trading at premiums or discounts to this par value, but does that mean the face value or initial issuance price of a bond is always set at $100? How does this relate to the interest payments and overall yield investors receive? Are there exceptions to this $100 face value standard? I'd appreciate any clarifications you can provide on this matter as I strive to deepen my understanding of the bond market.
