What is At Par?
How Does At Par Work?
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 Does At Par Matter?
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."