If you issue a bond at other than its face, or par, value, you must amortize the difference between the issue price and par. A premium bond sells for more than par; discount bonds sell below par.
The accrued market discount is the expected gain to be earned on a discount bond by holding it up until maturity, whereupon it should rise to its face value. This gives investors potential gains.
Carrying value equals bond face value plus unamortized premiums or minus discounts. Calculate it using face, current term, and premium or discount per year. Investors use carrying value to assess bond ...
Most investors reach for a broad, market-value-weighted bond fund to fill the bond portion of their portfolio. While no weighting approach is perfect, market-value weighting often provides the most ...
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When it comes to safe places to hold your money, few options are safer than Series EE bonds. They are backed by the full faith and credit of the U.S. government, which promises to double your money in ...