Par bond

A par bond ( par bond , hence the name par bond ) is a bond that is quoted at par . If it is a standard bond , the coupon is equal to the market interest rate .

Due to fluctuations in price over time, the Par property is volatile; a bond quoted at par today can already be quoted above or below par tomorrow and thus no longer be a par bond.

If a bond is newly issued at the price of the nominal value , it is - at the time of issue - a par bond. Some of the Brady Bonds issued as part of the Brady Plan were issued as par bonds and permanently referred to as par bonds - in contrast to discount bonds that were issued at a discount from their nominal value.

Yields on par bonds are considered when calculating yield curves.