face value

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Face value

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.

face value

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.

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 ?
Let's look at a scenario involving a 77-year-old female who owns an insurance policy with a $900,000 face amount and a current cash surrender value of $68,296.
The Small Face Amount Study Subgroup on May 29 reviewed the proposed studies and determined they raised more questions than they answered and should be tabled.
With these enhancements, Manulife remains focused on offering competitively priced policies on large face amounts of over $1,000,000.
The Warehouse Facility and the Securitization 99-1 loans had original face amounts of $35.
For producers, this design helps focus the prospect n need and eliminates objections regarding high face amounts, the company said.
The settlement includes all policyholders and certain beneficiaries of certain policies that insured non-Caucasians: industrial life policies issued from 1901 through 1964 with face amounts less than $1,000; ordinary policies issued from 1901 through 1972 with less-than-standard risk classifications; and, Metropolitan Series policies issued from 1960 through 1972 with face amounts between $4,500 and $5,000.
With this year's enhancements, Manulife is also introducing banded face amounts to optimize rates at higher face amounts.
RNYSC and others will be settled, terminating the plaintiffs' claims for damages arising from unpaid Princeton Notes with face amounts totalling approximately $1 billion.
In addition, 36% of respondents have seen an increase in the face amounts being purchased, with 83% of those agents seeing increases in face amounts ranging from 10-40%.