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Optional Redemption On or after the Par Call Date, the Company may redeem the notes, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest thereon to the redemption date.
Summary. The term ?at par? means at face value. Par values are normally constant, as opposed to market prices, which fluctuate with consumer demand and interest rate movements. Par values are generally fixed at 100, in lieu of 100% of the face value of the $1,000 bond.
If, when a company issues a new bond, it receives the face value of the security, the bond is said to have been issued at par. If the issuer receives less than the face value for the security, it is issued at a discount. If the issuer receives more than the face value for the security, it is issued at a premium.
A par bond refers to a bond that currently trades at its face value. The bond comes with a coupon rate that is identical to the market interest rate.
The par value of a bond, also called the face amount or face value, is the value written on the front of the bond. This is the amount of money that bond issuers promise to repay you at a future date. It is fixed at the time of issuance and, unlike market value, it doesn't change.
Most bonds are redeemable at par (i.e. redeemed at their face value). Some bonds are callable and can be redeemed prior to the maturity date. These types of bonds are redeemable at premium (i.e. value greater than the face value of the bond). The redemption value is stated as a percentage of face value.