Par value of a Bond

volabos · February 10th, 2008, 12:34 pm

Hi all,I cant understand what is the par value of a Bond and how to calculate it. Consider a year Treasury Bond with Principle $100. It gives interest at 6% p.a. semiannually. I saw in net that Par value of a Bond is the amount to be paid at the end of maturity. Here amount payable at the maturity is $100+$3 = $103. Is it Par value of that Bond? Can anyone clarify me?Regards,

Y0da · February 10th, 2008, 1:00 pm

Par value is just a synonym of principal amount.Therefore, in your case the par value is also $100.

volabos · February 11th, 2008, 9:31 am

Thank you