The amount of money
a seller receives for the goods or services sold. Price is the amount of money actually received by the seller, not necessarily the amount originally asked for. In the buying and selling of bonds
and mortgages, price represents the difference -- expressed as a percentage -- between the amount paid for an instrument
and the face value
of that instrument. For example, if sold at par, the price is 100 percent of the face value; a premium
price could be 105 percent; and a discount
price could be 95 percent of face value.