Definition
Face value, also called par value or principal, is the amount a bond issuer agrees to repay the bondholder at maturity. Most bonds have a face value of $1,000. Bonds trade at a premium (above par) or discount (below par) based on interest rates and credit quality.
Example
A bond with $1,000 face value will repay exactly $1,000 at maturity, regardless of what you paid for it.
FAQ
What is Face Value (Par Value)?
The nominal value of a bond that will be repaid at maturity.
Why is Face Value (Par Value) important?
Face Value (Par Value) helps investors evaluate fixed income and make more informed decisions.