What it is:
How it works/Example:
Now let's assume that three months have gone by, and the debt when it comes due. Accordingly, the are worth less, say, $800 each. The markets express this price as a percentage of , so these are trading at 0.8, or below . If the were still worth $1,000 each, they would be "trading at 100" or "at par."are trading between buyers and sellers in the . Because Company XYZ has recently had to lay off workers and cut its marketing program because it is running short of , the company has become riskier. This in turn means that the company is less likely to pay off its
Why it matters:
For, is a pricing . When the 's price is below the , the is considered "discounted"; when the 's price is above the , the is considered "at a premium."