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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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 ?

* The "face amount" of the card is treated as the amount paid for the communications service and, thus, the amount subject to the 3% tax (Sec.

Final regs. on excise tax treatment of prepaid telephone cards

Interestingly, mortality decreases by increasing face amount in the ultimate durations (as it did in the select period) suggesting some impact of underwriting may persist beyond the 25-year select period.

Report of the individual life insurance experience committee: mortality under standard individually underwritten life insurance between 2002 and 2004 policy anniversaries

For a hypothetical $100,000 UL product where premiums fund positive cash value at age 100 and where a chronic illness acceleration rider pays l/24th of the face amount each month over a 24-month period; and policy death benefit equals face amount in all durations, more than 25% of the total benefits paid will shift from mortality benefits to acceleration benefits by the addition of the rider.

A new response: hybrid life insurance/long-term care product sales are rising, but the industry must pay attention to pricing and risk mitigation techniques

Product Name: Minimum face amount $50,000; does not vary

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The liability would be increased by the interest expense and reduced by interest paid to accrue the liability from the discounted value at issuance to its face amount at maturity.

Is it equity? Is it debt? Or is it both?

Shortly after the sale, the sellers assigned their rights to receive the future payments to a bank (in which one of the sellers was an officer and director) for their face amount, less a $750 discount.

Barriers to the application of the constructive receipt doctrine

As of end-2017, treasury bonds still accounted for the bulk of outstanding debt paper with a face amount of P4.126 trillion, up from P3.871 trillion in November.

Gov't IOUs rose to P4.44T in 2017

Time Warner Inc (NYSE:TWX) said on Wednesday that it priced an underwritten public offering of USD600m of 3.875% senior notes due 2026 at a price equal to 99.951% of their face amount and USD300m of 4.85% debentures due 2045, at 96.812% of their face amount (additional debentures).

Time Warner prices offering of USD900m of senior notes and debentures

Selling the policy in the traditional life settlement market is a long shot, as this market generally seeks larger face amount policies, usually at least $500,000.

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The policyowner who elects to convert the maximum amount of coverage using the enhanced and basic conversion options can end up with a permanent life insurance face amount of 250% the term face amount.

Security Mutual Life: term life

The size of a life insurance company often is measured by the face amount of its portfolio, that is, the amount of life insurance it has issued that is in force.

Total life

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