How would you define “At Par” in a legal contract?

For example, if the British Pound and the Euro are deemed of equal value, it would be an instance of these currencies trading at par. Central banks may intervene in currency markets to stabilize exchange rates, occasionally leading to such scenarios. These stocks often promise fixed dividend payments and may trade at par if the issuing company’s financial situation is stable and the market conditions are favorable.

• When assets are trading at par, it means they are worth the same amount as the nominal or face value.
• In the context of golf, “par” refers to the standard number of strokes that an expert golfer is expected to need to finish a hole or an entire course.
• It can also be used to describe a situation where one currency is equal in value to another currency.
• When a security is trading at par, it means that the market price of the security is equal to its face value.
• Par value is fixed, while market value changes with credit ratings, time to maturity, and interest rates.

Connect and share knowledge within a single location that is structured and easy to search. Stack Exchange network consists of 183 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers. While “on par” is often used to compare two things, it can also be used to compare multiple things or even a group to a standard. There are several other expressions that carry a similar meaning to “on par.” We guarantee that you’ll be satisfied with the quality of our service or your money back. AI is a great tool, but when it comes to perfecting your writing, we rely on real human editors.

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A bond that is trading at its par value normally comes with a market interest rate that is equivalent to its assigned coupon rate. Investors of the bond, in turn, anticipate a return equal to the coupon for the cost of borrowing to the bond issuer. Regardless of whether you choose “on par” or “on a par,” it is crucial to recognize that context is king.

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Treasury bonds often trade at par, particularly shortly after issuance before the market has had time to adjust their prices based on new interest rate information. To use At Par in a sentence, you can say, “The bond was trading at par value.” This means that the bond was being traded at its face value, without a premium or discount. Another example could be, “The exchange rate between the two currencies was at par.” This indicates that the two currencies were of equal value at that moment. When using At Par in a sentence, it is important to understand its meaning and proper usage. At Par is a financial term that refers to a situation where a security is trading at its face value or equal to its nominal value. It can also be used to describe a situation where one currency is equal in value to another currency.

Words Whose History Will Surprise You

Whether used in financial contexts or in everyday language, “At Par” serves as a concise way to indicate equality or similarity between different entities. Overall, the examples discussed shed light on how this term is employed to convey the idea of being on par with something else. In financial terms, “at par” refers to the situation where a security is traded or sold for its face value. Suppose Company ABC issues a bond with a face value of $1,000 and a coupon rate of 5%.

However, while synonyms can enhance your vocabulary, it’s essential to choose the most appropriate term based on context. For instance, “comparable” might be more fitting when discussing two entities that are similar but not identical, while “equal” emphasizes a complete equivalence. Knowing when to use each synonym can substantially improve your precision in communication. In contrast, when you encounter “on a par,” it typically conveys the same meaning as “on par.” However, the addition of the article “a” can offer a slightly more formal flavor to the expression.

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• Conversely, during economic turmoil or uncertainty, these instruments may trade at discounts due to higher perceived risks.
• When securities were issued in paper form, the par value was printed on the face of the security, hence the term “face value.”
• Credit risk pertains to the risk of the issuer defaulting on its payment obligations.
• Regardless of whether you choose “on par” or “on a par,” it is crucial to recognize that context is king.
• A bond with a face value of $100 and a coupon rate of 5% will pay $5 in interest even if the bond price goes up or falls.

At Par means full payment received without obligation for additional charges or premiums. Then, on the par three 17th — Mahan had to win this hole and the next to keep the U.S. hopes alive — Mahan chunked his second shot, a chip, short of the green. The tea plants in lunar soil flourished, performing on par with those in Devonian soil, while the Mars saplings failed to grow. “(The quality of) H/his cooking skill(s) is/are par with professional chefs.

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However, if a bond is said to be trading at 85, it means that it is trading at only 85% of its par value, making it $850. The Reg S/144A five-year issue was priced at par with a similar coupon and yield to maturity of 6. This indicates they met the expected performance level without exceeding it. 🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard ‘Genie definitions’ below, with guidance on which documents and which industry to use for each. We list many below, then combine them into one or more market-standard definitions.

For example, in sports, you might hear commentators say “The player’s performance was at par with expectations,” meaning it met the expected at par meaning in english level. It’s essential to recognize these exceptions to ensure you’re using the term accurately across various situations. Corporate bonds are common examples where the concept of trading at par is prominent. During periods of economic stability, bonds and other financial instruments are more likely to trade at par. Conversely, during economic turmoil or uncertainty, these instruments may trade at discounts due to higher perceived risks. It’s important to note that At Par is commonly used in financial contexts, so it is best to use it when discussing investments, bonds, stocks, or currency exchange.

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Access and download collection of free Templates to help power your productivity and performance. Boost your confidence and master accounting skills effortlessly with CFI’s expert-led courses! Choose CFI for unparalleled industry expertise and hands-on learning that prepares you for real-world success. And if gilts were held to redemption rather than being sold, the redemption value is likely to be lower than the purchase price paid by the APF, since most of the gilts were purchased above par.

Therefore, it is advisable to stick with “on par” in both writing and conversation for clarity and correctness. Language is a dynamic and evolving entity, and the debate surrounding “on par” versus “on a par” underscores this complexity. The phrase primarily signifies equality and should be employed thoughtfully within context.

In conclusion, mastering the usage of At Par in a sentence can help you convey precise financial information and enhance your understanding of the financial markets. When using “on par,” just ensure that the context allows for a clear comparison to be made to maintain the intended meaning. If a bond has a 5% coupon, but similar bonds yield 10%, investors will pay less than par to cover the rate difference. The bond’s value at maturity, plus its yield up to that time, must be at least 10% to attract a buyer. 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 gets less than the security’s face value, it’s issued at a discount.

The relationship between the bond’s coupon rate and the current interest rate environment determines its market price. If the coupon rate is higher than current interest rates, the bond may trade at a premium. Now that you’ve learned some valuable insights about using “At Par” correctly, it’s time to put your knowledge to the test.

Par value is fixed, while market value changes with credit ratings, time to maturity, and interest rates. When securities were issued in paper form, the par value was printed on the face of the security, hence the term “face value.” One common mistake is using “At Par” interchangeably with “At Par Value.” While they are related, they have slightly different meanings. “At Par” refers to trading at face value, while “At Par Value” specifically refers to trading at the value stated on the security. Make sure you’re using it where it makes sense in the context of finance or equality.

At times, this role has put Miller’s authority on par with that of the Secretary of State and national security adviser Marco Rubio. The OED, sense 2, proposes on a par – meaning ‘on an equal footing with’. Imagine you’re a student diving into the world of finance and banking. You come across the term “At Par” and wonder, what does it really mean and how can I use it correctly? Don’t worry, we’ve got you covered with some insightful tips and tricks.