If you issue a bond at other than its face, or par, value, you must amortize the difference between the issue price and par. A premium bond sells for more than par; discount bonds sell below par.

The accrued market discount is the expected gain to be earned on a discount bond by holding it up until maturity, whereupon it should rise to its face value. This gives investors potential gains.

Carrying value equals bond face value plus unamortized premiums or minus discounts. Calculate it using face, current term, and premium or discount per year. Investors use carrying value to assess bond ...

Series EE savings bonds stop earning interest after 30 years. You can cash in a Series EE bond after one year. The method for checking your bond’s value depends on if it is electronic or paper. When ...

Interest Rate Risk Interest rates and bond prices have an inverse relationship - when interest rates rise, bond prices fall, and vice versa. Therefore, if you need to sell your bond before maturity ...