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 $ ...

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 ...

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 ...

"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 ...