• Par value is the price at which the bond was issued, also known as its face value.

  • The price of the bond will then fluctuate based on prevailing interest rates, time to maturity and credit rating, resulting in the bond trading either above par or below par.
  • “At par” will always refer to the original price at which the bond was issued.
  • The owner of the bond will receive its face value on the date of its redemption.