Asked by
Abigail Fuentes
on Oct 15, 2024Verified
A bond's par value is not necessarily the same as its market value.
Par Value
The face value of a bond or the stock value stated in the corporate charter, often set at a minimal amount.
Market Value
The current price at which an asset or service can be bought or sold in the market, not necessarily equal to the book value.
- Explain the distinction between the market value and the par value of bonds.
Verified Answer
BG
Learning Objectives
- Explain the distinction between the market value and the par value of bonds.