Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• PAR LINE
  
  The parity price at which the yield of a mortgage-backed bond equals its net coupon rate. Because of the delay days, the par line is not 100 but instead is somewhat lower. Par line is not constant for different coupon rates at different delay days. However, it is not a function of prepayment speeds.
  
  Back