Face Value

Wed, Jul 16th,2014
Face value is the par or nominal value of a bond, note or other security. Although bonds may fluctuate in price from the time of issuance until redemption, they are redeemed at maturity at their?face value, unless the issuer defaults. If the bonds are redeemed before maturity, bondholders normally receive a slight premium over face value. The?face value?is the amount on which interest payments are calculated. Thus a 10% coupon bond with a face value of $1000 pays bond investors $100 per year. See also?Par Value.