Inflation is often referred to as the enemy of bonds because it erodes the present value of future coupon and principal ...

When a new bond is issued, the interest rate it pays is called the coupon rate, which is the fixed annual payment expressed as a percentage of the face value. For example, a 5% coupon bond pays $ ...

"The par value remains constant throughout the life of the bond and is used to calculate the bond's coupon payments and final repayment to the bondholder at maturity." For example, a $1,000 par ...

With coupon bonds, investors rely on a metric known as duration to measure a bond's price sensitivity to changes in interest rates. Because a coupon bond makes a series of payments over its ...

Bonds are debt securities that entitle the holder to receive interest payments. Although some stock ... if you bought it at a discount to its face value. That can happen if interest rates rise ...

The investors are paid back their principal when the bond expires or matures. This is the maturity date. Investors usually receive a fixed, periodic interest payment ... in the value of an ...

Investing can be filled with a lot of industry jargon. Par value is a term you may hear in relation to the value of a bond or share of stock. In this instance, we are concerned with the par value ...