The phrase “on par” draws its etymological roots from the realm of finance and sports. Bond yields and dividend rates for preferred stocks greatly affect whether securities are issued at par, a discount, or a premium. By examining these sentences, we can understand how “At Par” is utilized in various scenarios to express parity or equality. The phrase “on par” originates from the sport of golf, where “par” is the predetermined number of strokes an expert golfer must need to complete a hole, a round, or a tournament.
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Yes, phrases such as “equivalent to”, “equal to”, “in line with”, and “as good as” can be used as synonyms. “This is my first time using TextRanch, and I like how the editors take time to correct my text. To everyone who has never used TextRanch before, I highly recommend trying it.” No subscription fees and rates up to 50% cheaper than other online editing services.
- “On par” is a phrase that captures the idea of equality or equivalence, especially in terms of quality, performance, or value.
- This athletic context is where it gained the connotation of meeting a standard.
- This value is typically expressed as 100, meaning if a bond’s face value is $1,000, it is trading at $1,000 in the market.
- Being able to interpret at par trading helps investors make informed decisions about buying or selling securities based on their current market prices, prevailing interest rates, and overall economic conditions.
- In forex trading, “at par” can refer to the situation where two currencies are of equal value.
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If the issuer receives more than the face value for the security, it is issued at a premium. In its charter, the company promises not to sell its stock at lower than par value. In this article, we will explore the concept of “At Par” in different contexts and provide you with several examples of sentences that contain this phrase. By the end, you will have a clear understanding of how to integrate “At Par” into your conversations and written communication effectively.
Idioms and Phrases
Whether you are negotiating deals, discussing investments, or analyzing financial statements, knowing how to use this term accurately is crucial for effective communication. The phrase “on par” means “at the same level or standard as something else.” It is often used to compare the quality of two things, such as two pieces of work or two athletes. It can also be used more broadly to mean “average” or “mediocre.” For example, you might say that a movie was “on par” with other movies in its genre, meaning that it was neither particularly good nor bad. In just a few minutes (or hours for longer documents), you’ll receive your corrected text. Review the changes, make any final adjustments, and confidently share your polished English with the world.
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“On par” is a phrase that captures the idea of equality or equivalence, especially in terms of quality, performance, or value. It emphasizes the importance of setting standards and making comparisons, which are key aspects of decision-making, evaluation, and improvement. Yes, “on par” can be used in a variety of contexts, not just sports. It can refer to academic performance, business metrics, or even the quality of a product or service. The phrase commonly appears in pop culture, usually indicating equality or comparison in terms of quality, performance, or standard.
“On par” is used to indicate equality in quality or standards, as discussed earlier. In contrast, “at par” is a financial term at par meaning in english often used in banking and finance to describe when a security or bond is trading at its nominal or face value. The term “at par” is used within the financial markets to describe the situation in which a bond or other debt security is trading at its nominal or face value.
Investors should consider other factors like credit risk, interest rate risk, and the term of the bond. It has its origins in golf, referring to a score even with the course’s par or number of strokes expected to complete a hole. This athletic context is where it gained the connotation of meeting a standard. You can use the idiom in a sentence to denote equality or a comparable standard.
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.
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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.
- The reason for a bond being issued at a price that is different than its par value has to do with current market interest rates.
- This statement effectively conveys equality in experience without sounding pretentious.
- “(The quality of) H/his cooking skill(s) is/are par with professional chefs.
- The phrase “on par” is commonly used to indicate that something is equal to or comparable with a standard or benchmark.
When a bond is issued at par, it means the issuing entity is selling the bond at its face value. Over time, the market value of the bond can fluctuate based on various factors such as interest rates, credit risk, and overall market conditions. If the bond’s market value returns to being equal to its nominal value, it is once again trading at par. In the case of stocks, par value is often an arbitrary value assigned to a share by the issuing company. Stocks can also be issued or traded “at par” when their market price is equal to their par value, although this is less common and less relevant than it is for bonds. “At par” in accounting refers to a financial instrument, such as a bond or stock, being traded or issued at its face value or nominal value.
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.
This means that the bond pays $50 in interest annually ($1,000 x 0.05). If the bond is issued “at par,” investors would purchase the bond for its face value, which is $1,000. In the context of bonds, the face value is the amount that the bond issuer agrees to pay the bondholder upon the bond’s maturity. When a bond is issued at par, the interest rate on the bond is equal to its yield, which is the return an investor can expect to receive from holding the bond until it matures. Generally, when discussing something that meets expectations, “on par” is the preferred phrase. Using “on a par” may lead to confusion, as it strays from the established idiomatic usage that most English speakers are familiar with.
When we say something is “on par” with something else, it signifies that they are on the same level, have the same importance, or share a similar standard or value. The phrase ‘at par’ is correct and commonly used in financial contexts to mean at the nominal or face value of something. Credit risk pertains to the risk of the issuer defaulting on its payment obligations. Bonds from issuers with higher creditworthiness are more likely to trade at par or a premium, while those from less creditworthy issuers might trade at a discount.
Although a cultural slap in the face that can be quite easily parodied, the service here is definitely above par. Both played well and, after hours on foot, with Marko scoring under par (gross) and Gen at even par — with most of the holes won by birdies — it was Sarmiento who edged Nagai, 2-up. You can find recent as well as up to par material not to mention information related to Home windows 7in a lot of our blog. You can get latest and up to par tips plus information pertaining to Windows xp 7in the webpage.
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.
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