Question

A bond with a face value of $1,000 that sells for $1,000 in the market is called a _____ bond.

Answer 1

have any answers to the question

Answer 2

A bond with a face value of $1,000 that sells for $1,000 in the market is called a par bond.

When a bond trades for its face amount, this is called a flat or a par bond. There is no gain or loss compared to the face value.