Above Par

Business, Legal & Accounting Glossary

Definition: Above Par


Above Par

Quick Summary of Above Par


Having a current price above face value. This would generally be the case if the coupon paid on the bond exceeds the discount rate applicable, or if market interest rates fall after the bond is bought. If the bondholder had bought at a price above par, then he/she will suffer a capital loss upon maturity since the bond will only be redeemed at face value.




Examples of Above Par in a sentence


You should always try and shoot for being above par so that you know you made something for your time.

In the current market, if my stock portfolio closes above par I will consider this year to be a success.

Since the interest rates had decreased from issuance, the bond was now above par as the coupon rate was higher.


Related Phrases


share premium account
share premium
at par
par value
below par
par


Cite Term


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https://payrollheaven.com/define/above-par/
Modern Language Association (MLA):
Above Par. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 04, 2021 https://payrollheaven.com/define/above-par/.
Chicago Manual of Style (CMS):
Above Par. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/above-par/ (accessed: December 04, 2021).
American Psychological Association (APA):
Above Par. PayrollHeaven.com. Retrieved December 04, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/above-par/

Definition Sources


Definitions for Above Par are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th November, 2021 | 0 Views.