One percent or 1%. A Bond that is discounted two Points is quoted at 98% of its Par (Principal amount) value. Because the dollar prices of municipal Bonds are quoted as a percentage of $1,000, a Point is worth $10 regardless of the actual Denomination of a particular Bond. For example, a bond discounted 2 Points, or $20, is quoted at “98” (98% of its Par Value), or $980 per $1,000.

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Hudson Yards Rail Yards

Start with the Bond Basics

Hundreds of Terms and Concepts

Downgrade (Ratings)

The lowering of a rating by a Rrting agency. Lower ratings indicate lower credit quality.