Sentences with phrase «well below face value»
Why pay full price for popular gift cards when warehouse clubs and discount websites sell them well below face value.
https://www.kiplinger.com/ Not exact matches
In your case, because your bond matures in 56 years but yields ~ 5 % (well above the current market rate), for it to be below Face value implies a strong probability of default, or a strong belief that market returns will be above 5 % over the next 56 years.
0 % bonds are usually sold well below par value (eg a 100 $ face value bond for 2020 might sell for 90 $ today) Hence, your gains will be CAPITAL GAINS.