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How to Get Your Par Back at Maturity
A company issues a bond. A has a thousand dollar face value. Underlying that bond is 800, undred frty five, say, 800 dollars worth of stock in the life of that bond. The stock can move higher, can move lower, or do nothing,. So, five years to maturity, you have a thousand dollar bond with 800 dollars a ston. Say the stock doubles in that period, right? You come to the maturity point. It's a bond, it's going to mature a par. Do i want to put this company back to the company? Andke put this bond back to thecompany and take my thousand dollars? Or since it's doubled, i