# face value

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## Face Value

The amount of money stated on a bond or (rarely) a stock certificate. For example, if a bond certificate says \$1,000, the face value is \$1000. Bonds pay the face value at maturity, and calculate coupons as a percentage of the face value. Many bonds are issued at their face value, though discount bonds are not. The face value is also called the par value or simply par.

See par value.

## Face value.

Face value, or par value, is the dollar value of a bond or note, generally \$1,000.

That is the amount the issuer has borrowed, usually the amount you pay to buy the bond at the time it is issued, and the amount you are repaid at maturity, provided the issuer doesn't default.

However, bonds may trade at a discount, which is less than face value, or at a premium, which is more than face value, in the secondary market. That's the bond's market value, and it changes regularly, based on supply and demand.

The death benefit of a life insurance policy which is the amount the beneficiary receives when the insured person dies. It's also known as the policy's face value.

see PAR VALUE 1.

## face value

The value of an instrument (promissory note, bond, stock, etc.) as stated on the face of the instrument.The face value does not always equal the market value.

Example: A 5-year-old mortgage note with a face value of \$100,000 and an amortization term of 20 years at 2.8 percent interest is worth far less than \$100,000 for two reasons: (1) The principal balance is now a little under \$80,000. (2) Why would anyone invest even \$80,000 to earn 2.8 percent interest when he or she can get better returns in the marketplace? For both reasons, an investor would pay much less than the \$100,000 face value to buy the mortgage.

References in periodicals archive ?
First, USD1,408,113,000 aggregate face amount of class A Pass Through certificates, Series 2013-2 for an equivalent aggregate face amount of outstanding class A Pass Through certificates, Series 2013-2, which were privately placed on July 31, 2013.
American has not extended its offer to exchange \$256,018,000 aggregate face amount of Class C Pass Through Certificates, Series 2013-2, which have been registered under the Securities Act, for an equivalent aggregate face amount of outstanding Class C Pass Through Certificates, Series 2013-2 (the "Old Class C Certificates"), which were privately placed on Dec.
The best prospects for such transactions are age 65 or older, have experienced a change in their health and are insured by a policy with a face amount of at least \$100,000.
The offer to exchange (the Class A Exchange Offer) USD924,408,000 aggregate face amount of Class A Certificates, Series 2007-1 (New Class A Certificates), registered under the US Securities Act of 1933, as amended, for an equal face amount of outstanding Class A Certificates, Series 2007-1 (Old Class A Certificates), which were privately placed on 11 October 2007, has been extended by Delta Air Lines Inc (NYSE:DAL).
insurer will need to instill in the sales force the idea that this information is needed in order to sell higher face amounts at affordable and competitive rates.
A few premium examples: ART at \$250,000 Face Amount, Male, Preferred Non-Tobacco Use -- first year premium for issue age 35 is \$240; for issue age 55 is \$565.
In Australia, blood testing for HIV--the virus that could cause AIDS--begins at a policy face amount of A\$500,000 (US\$276, 200), said Petar Peric, an underwriter for General-Cologne Reinsurance.
The statements in this news release that are not historical statements, including statements regarding our expectations about the limited partnership, the amount of settlement contracts to be purchased, the face amount of the underlying life insurance policies, and the possible accounting results from the transaction, including the effect on expenses, earnings and liquidity, are forward-looking statements within the meaning of the federal securities laws.
NYSE: PNX) today announced the availability of Phoenix Express VUL(SM), a simplified issue variable universal life insurance product that offers face amounts of up to \$1 million without a medical exam and an underwriting decision within hours.

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