Par Value / Face Value
The principal amount repaid at maturity — typically $1,000 for corporate bonds.
Par value (also called face value or principal) is the amount the bond issuer promises to repay the bondholder at maturity. For most corporate and government bonds, par is $1,000 per bond. Bond prices are quoted as a percentage of par: a price of 98 means the bond trades at $980 (98% of $1,000 par). Coupon payments are calculated as a percentage of par value, not market price. For example, a 5% coupon on $1,000 par pays $50 annually, regardless of whether the bond trades at $950 or $1,050. At maturity, bondholders receive par value plus the final coupon, regardless of the purchase price.
Current Yield
Annual coupon income divided by the bond's clean price.
Running Yield
Annual coupon income divided by the bond's dirty price (clean price plus accrued interest).
Yield to Maturity (YTM)
The annualized return if you hold the bond to maturity, assuming all coupons are reinvested at the same rate.
Dirty Price
The total settlement price paid for a bond, including accrued interest.
Clean Price
The quoted bond price excluding accrued interest.
Accrued Interest
Interest that has accumulated since the last coupon payment, paid by the buyer to the seller.