While par value refers to the face value of the bond, not all bonds are issued at their par value. Discount bonds are issued below par while other bonds can be issued at a premium, meaning they are issued above par value. When trading, bond values are described as percentages of 100, meaning a bond trading at par would be quoted at 100. A quote of 90 would mean the market price of the bond is 90% of its par value. Investors expect a return equal to the coupon for the risk of lending to the bond issuer. It works great for my no-rise pizza dough, but I found the resulting pizza crusts to be a bit tougher without much rise this way.

What is the on par definition, and how is it used in financial contexts?

Bonds are debt instruments, meaning bond issuers promise to repay bondholders a certain amount of money at a determined maturity date. The amount of money paid to bondholders at maturity is the bond’s par value. A bond’s par value is its face value, the price that it was issued at.

When to Use “On a Par” Accurately

A bond will not trade at par if current interest rates are above or below the bond’s coupon rate, which is the interest rate that it yields. Reserve “on a par” for those times when you’re underscoring precise equivalence. It’s a snug fit when sizing up the performance of two employees or balancing the pros and cons of your investment options. Use it when precision is paramount, and you need to convey that two entities are in a dead heat, be it in virtue, value, or volume. Perfect timing and context make “on a par” not just an expression, but a statement of exactness. Par value is useful for investors because it works as a benchmark for pricing bonds.

“On a par” means equal in status or quality, while “par excellence” is a French term used to describe something as the best of its kind or excellent. They both relate to quality but imply different levels of comparison. Certain state regulators require companies to issue stock with a minimum par value. Because par value doesn’t impact market value of stocks, it is acting solely as a regulatory requirement.

When trading, the market price of a bond can be above, below or at par depending on market forces. If prevailing yields are lower, say 3%, an investor is willing to pay more than par for that 5% bond. The investor will receive the coupon but have to pay more for it due to the lower prevailing yields.

Shaping the Dough

It’s not uncommon to hear a commentary on how a rookie player’s stats are on par with seasoned professionals, or perhaps how a team’s performance aligns closely with league averages. This expression helps to encapsulate the dynamic essence of sports where measurements and comparisons are indispensable. Each of these substitutions retains the original intent, allowing you to amplify your verbal and written palette while keeping your meaning crystal clear. Par value is crucial in understanding bond valuation and fixed income trading because regardless of the price paid to own a types of audit bond, issuers pay back only the par value, also known as the principal investment.

The “on par” definition in finance refers to a security traded at its face value. It’s used to indicate that the market price of a bond or stock is equal to its nominal, or face, value. An investor may choose to purchase a bond issued previously when interest rates were higher to secure greater returns from the bond’s coupon payments, compared to bonds issued at the lower prevailing rate.

What is the difference between “on a par” and “par excellence”?

The phrase “on a par” is used to describe things that are comparable in level, quality, or value. It suggests that two or more elements hold the same rank or position when measured against each other. In essence, it’s like saying one’s cooking skills are as impressive as a professional chef’s – they’re on equal footing, or, in our expression of interest, on a par. Some states do not require par value for stocks, so not every common stock is going to have a par value. For stocks that do have a par value, it is declared on the company’s corporate charter as well as the Shareholders’ Equity portion of the company’s balance sheet. Because of state regulation requirements, most common stock is issued with a par value, but it means essentially nothing for investors.

• Syntax-wise, ensure that the components being compared are parallel for the equivalence to resonate with clarity.
• So, when a bond is issued at par, it’s financial speak for saying investors are paying a price equivalent to its nominal value.
• The present value of a bond can be above, below or at par value based on interest rates, credit ratings and additional market forces.
• Stack Exchange network consists of 183 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.
• Keeping this in mind will ensure your usage remains grammatically correct and your message, unblemished.
• Each phrase dances around the same maypole of comparison, albeit with their unique steps and rhythms.
• Use it when precision is paramount, and you need to convey that two entities are in a dead heat, be it in virtue, value, or volume.

Price List

Par value is static, unlike market value, which fluctuates with credit ratings, time to maturity, and interest rate fluctuations. When securities were issued in paper form, the par value was printed on the face of the security, hence the term „face value.“ This sourdough pizza dough recipe is easy to handle, flavorful, and perfect for homemade pizza night. Includes tested US and metric measurements plus tips for freezing and baking. IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate.

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• Due to the constant fluctuations of interest rates, bonds and other financial instruments almost never trade exactly at par.
• The pronunciation of the phrase is straightforward, aligning closely with its common usage in both conversational and formal English.
• Includes tested US and metric measurements plus tips for freezing and baking.
• All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only.
• The bond’s value at its maturity plus its yield up to that time must be at least 10% to attract a buyer.
• A bond’s par value is its face value, the price that it was issued at.
• The enterprise would use threats of violence to collect money from customers whose payments were overdue.

Tools like online thesaurus entries and browser searches provide synonyms such as “equal to” or “comparable with,” enhancing understanding of its application. Whether consulting a dictionary or exploring examples in linguistic platforms, the phrase continues to hold significant relevance in describing parity across diverse domains. Analyzing sentences from various sources—be it a venerable print journal or a bustling online news portal—reveals “on a par” in action, gracefully serving its role as an equilibrium keeper. Whether journalists are comparing economic trends or tech reviewers are weighing gadgets against each other, sentences structured with this phrase provide readers with clear, concise comparisons, helping them digest complex information.

The present value of a bond can be above, below or at par value based on interest rates, credit ratings and additional market forces. Par value for preferred stock is used to determine the dividend paid to investors. Like bonds, dividends are stated as percentages and are also commonly referred to as a coupon rate. For example, if a bond’s YTM is 10%, an investor can expect a 10% rate of return on the bond when considering both the principal payment and annual coupon payments. The yield for bonds and the dividend rate for preferred stocks have a material effect on whether new issues of these securities are issued at par, at a discount, or at a premium. In its charter, the company promises not to sell its stock at lower than par value.

Spread a thin layer of pizza sauce (or sauce of choice), leaving ½-inch from the edge. Add ½ – 1 cup cheese, followed by toppings, then additional ½ – 1 cup cheese. In one regard, players can simply hit a long iron or hybrid club off the tee into position short of the fairway bunker complex on the left, setting up a full wedge or short iron into the elevated the difference between cash flow and profit green. But the shortness of the hole adds a psychological element to the equation—the belief that a 3 is out there for the taking—that can override prudency. LaForte thus needed to acquire increasingly large injections of new investor money just to keep the lights on and the business running, a hallmark of a traditional Ponzi scheme.

Bond investors typically calculate a few different rates of returns to compare individual bonds. Yield-to-maturity (YTM), yield-to-call (YTC) and yield-to-worst (YTW) are all calculations to help bond investors determine the rate of return they’d earn from holding the bond. For example, if a 3% coupon bond is issued when interest rates are 3%, the bond will trade at par value. However, if interest rates fall to 2%, the value of the bond will rise, causing it to trade at a premium because the bond will be more attractive than bonds issued with a 2% coupon rate. The coupon rate of a bond is the stated amount of interest that the bond will pay an investor at the time of its issue. A bond’s yield is its effective rate of return when the bond’s price changes.

They can be issued at a premium (price is higher than the par value) or at a discount (price is below the par value). The reason for a bond being issued at a price that is different than its par value has to do with current market interest rates. For example, if a bond’s yield is higher than market rates, then a bond will trade at a premium. Conversely, if a bond’s yield is below market rates, then it will trade at a discount to make it more attractive. Due to the constant fluctuations of interest rates, bonds and other financial instruments almost never trade exactly at par.

Steer clear from plurality and possession pitfalls when using “on a par.” It’s crucial to note that “par” doesn’t take a plural form (“pars”) or possessive form (“par’s”) in this context. The beauty of this phrase lies in its simplicity and singular form, which stands firm regardless of the subject’s number or ownership. Keeping this in mind will ensure your usage remains grammatically correct and your message, unblemished.

The enterprise would use threats of violence to collect money from customers what is a credit memo definition and how to create whose payments were overdue. James LaForte admitted that, in threatening one particular Par Funding customer, he told the customer that he must repay the company immediately because James LaForte was not to be messed with and had previously torched people’s cars and kicked people’s teeth in. Par Funding’s principal means of generating income was to “advance” money to businesses (known as merchant cash advance or “MCA” customers) that were in need of short-term financing at high rates of return.

Corporate bonds are typically issued at $1,000 or $100 while municipal bonds typically have par values of $5,000. Also known as nominal value, par value refers to the face value of a bond at issuance or the stock value stated in the corporate charter. The Corpus of Contemporary American English finds 370 uses of „on a par with“ to 348 of „on par with“, or 322 to 272 if we exclude spoken news, sports magazines, and sports newspapers to reduce those using the term as golf jargon. Less strong a preference as found in ngrams, but still suggesting „on a par with“ is the more common form. Because of this you will sometimes find „on par with“ used figuratively for other contexts even outside of headline style and golf.