easy · Debt Capital Markets pricing-yields-curve
What is the 'pull to par' phenomenon in fixed income markets?
- It is the gradual drift of a bond's traded yield toward the prevailing central-bank policy rate.
- It is the upgrade of a high-yield issuer up into the investment-grade category by the major rating agencies.
- The inevitable convergence of a bond's price toward its face value as its maturity date approaches.
- It is the mandate that every newly issued bond be priced and sold to investors at an even par value of 100.00.
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