Discover how below par bonds work, as they trade for less than their face value. Learn why bonds might trade at a discount due to market and economic conditions.

When a government or corporation issues a bond, it does so with a specific par value and interest rate. Once in the market, those values don’t change; however, the value of a bond can change depending ...

A municipal bond’s embedded call option allows the issuer of the bond to “call” (i.e., pay back) the debt at a date prior to the bond’s final maturity, which allows the issuer to reduce the cost of ...