A bond is a type of debt issued by a company or a government agency to raise money. The person who buys a bond pays the fair market value for the bond in exchange for a guaranteed amount when the bond ...

The coupon rate a company pays on a bond is the most obvious cost of debt financing, but it isn't the only cost of financing. The price at which a company sells its bonds -- and the resulting premium ...

What Is a Discount Bond? A discount bond is a debt security that is issued or traded for a price lower than its face or par value. This means that investors can purchase the bond at a discount to its ...

When a bond has an interest rate that's higher than prevailing rates in the bond market, it will typically trade at a price higher than its face value. Such a bond is said to trade at a premium, and ...

Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of ...