Finance glossary
Face Value
Definition
The nominal value of a bond repaid at maturity, also called par.
Face value, or par value, is the amount a bond issuer agrees to repay the holder at maturity, commonly 1,000 dollars per bond. Coupon payments are calculated as a percentage of it. Bonds trade above or below par depending on how their coupon compares to current rates.
In a sentence
The bond's $1,000 face value would be repaid in full when it matured.
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