Bond Price Appreciation

Vocabulary flashcards covering bond price appreciation concepts drawn from the notes.

Bond price appreciation

An increase in a bond's market price from the price at which it was purchased or from its par value, yielding potential capital gains if sold.

Purchase price

The amount paid to buy a bond in the market (e.g., 3,000).

Premium (bond pricing)

When a bond trades above its face value, such as buying at 4,000 for a bond with 3,000 par value.

Par value / face value

The stated value of the bond to be repaid at maturity; baseline for pricing.

Capital gain (bond)

Profit realized from selling a bond for more than its purchase price.