Below par

Below par,

Definition of Below par:

  1. A bond can be traded at par, above par, or below par. A bond trading at par value is simply one that is trading at the face value of the bond’s certificate. An investor who purchases this bond will be repaid the par value at maturity, nothing more, nothing less.

  2. Worse than is usual or expected.

  3. Bond, share, or other security selling at a price lower than its par value that is, at a discount. Bond values are stated on a scale where the face value (whatever the amount) is assigned the number 100, and the discount is shown as a factor of 100. For example, a bond with a par value $1,000 and priced at 90 is selling at $900. Also called at a discount..

  4. Below par is a term describing a bond whose market price is trading below its face value or principal value, usually $1,000. As bond prices are quoted as a percentage of face value, a price below par would typically be anything less than 100.

Synonyms of Below par

Ailing, At a discount, At a reduction, Bad, Below, Below deck, Below standard, Below the mark, Belowstairs, Critically ill, Down, Down below, Downstairs, Faint, Faintish, Feeling awful, Feeling faint, Feeling something terrible, Ill, In danger, Indisposed, Infra, Laid low, Mortally ill, Not quite right, Off, Off-color, Out of sorts, Rocky, Seedy, Sick, Sick unto death, Sickish, Substandard, Taken ill, Under, Under the weather, Underfoot, Unwell, Substandard, Inferior, Not up to standard, Not up to scratch, Under par, Below average, Lacking, Wanting, Second-rate, Mediocre, Middling, Poor, Bad, Inadequate, Unsatisfactory, Uninspired, Undistinguished

How to use Below par in a sentence?

  1. Below par bonds are said to be trading at a discount and the price will be quoted below 100.
  2. Below par refers to a bond price that is currently below its face value.
  3. Bonds trade below par as interest rates rise, as the issuer's credit rating falls, or when the bond's supply greatly exceeds demand.

Meaning of Below par & Below par Definition