Par value bonds are a type of debt instrument that is issued by a company at a fixed price. They are also referred to as face value bonds, as they have a face value that is equal to the amount of money the company has to pay back to the investor at the end of the bond's life. Par value bonds are usually issued at a higher interest rate than other debt instruments, as they are viewed as a safer investment.
The relationship between an investor and a par value bond is based on trust. The investor needs to trust that the company will be able to make the payments required for the bond and that the company will be able to keep their promises. If the company fails to make the payments required or fails to keep their promises, then the investor could be left without the money they invested.
The age gap between an investor and the company issuing the par value bond can have an impact on the relationship. If there is a long age gap, then the investor may not feel as comfortable investing in the bond as they may not have the same level of trust in the company. This can lead to additional stress and anxiety for the investor, which can have a negative impact on their investment.