Par Value is not given

CFA Level I Fixed Income
#1

Hello there,

If par value is not given in bonds problems, what should be the assumption? 100 or 1000?

#2

depends on a question

#3

If you apply either par value consistently throughout your calculations it won’t matter.

I personally like to take 100 so that I can handle results as percentage of any par value.

Regards,

Oscar

#4

I think you cna make a reasonable assumption of what the par value is.

If bond price is 110.10, is it more likely that the par value is 10, 100,1000? Use common sense.