When companies issue a bond, they do so with a par value and a coupon rate: the terms that dictate the yield of the bond for potential investors. However, once they reach the market, bonds can trade ...

A bond is a type of debt issued by a company or a government agency to raise money. The person who buys a bond pays the fair market value for the bond in exchange for a guaranteed amount when the bond ...

Amortization tables work best with lump-sum loans with fixed interest rates. They also work best with loans that get paid down gradually over time, and your payment is the same dollar amount each ...

Learn about the targeted amortization class (TAC), an investment tool offering prepayment protection by maintaining a fixed principal payment schedule for asset-backed securities.

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.