Cryptocurrency Q&A
Are bonds always $100?
Are bonds always $100?
Chiara
Mon Jul 01 2024
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5 answers
1714
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.
5 answers
GinsengBoostPowerBoost
Wed Jul 03 2024
However, it is not uncommon to encounter bonds with varying face values.
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HanRiverWave
Wed Jul 03 2024
For instance, some bonds may have a face value of $100, which can be suitable for smaller investors.
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Davide
Wed Jul 03 2024
The majority of bonds issued in the market carry a standard denomination of $1,000.
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EmilyJohnson
Wed Jul 03 2024
On the other hand, larger investors may prefer bonds with higher face values, such as $5,000 or even $10,000.
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Davide
Wed Jul 03 2024
This denomination reflects the common face value of a bond, meaning the amount that the bondholder is owed at maturity.
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