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When a company issues bonds, if I buy directly from the company at the time it is being issued, can I hope to buy the bond at par? I am looking at canadian bonds and all of them are selling at premium over par. Because it has been a while since they have been issued and their price has gone up.

So, if buying from the company directly at time of issuance guarantees being able to buy at par, how can I know when a company is issuing new bonds? I am hoping to sign up for some kind of waiting list, similar to an IPO.

  • Why would you care? Current value does not really matter (unless it's so big that it causes liquidity problems), but rather the interest rate. – tomasz May 7 '15 at 18:44
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A company issuing a bond is selling a series of future payments: the regular coupons, and the maturity payment of the face value. The value of those future payments to a buyer is based on the buyer's assessment of the reliability of the issuing company, and on the possible gains to be made by investing the money elsewhere. Why should that value necessarily equal the face value of the bond at any time?

  • Thanks. I was of the impression that you can buy it at par if you buy it at issue time. – Victor123 May 7 '15 at 19:47
  • But what if someone wants to pay more? – DJohnM May 7 '15 at 20:19

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