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 classic literature ?
About this time there went a rumor throughout the valley, that the great man, foretold from ages long ago, who was to bear a resemblance to the Great Stone Face, had appeared at last.
Gathergold had turned out to be the prophetic personage so long and vainly looked for, and that his visage was the perfect and undeniable similitude of the Great Stone Face.
The black veil, though it covers only our pastor's face, throws its influence over his whole person, and makes him ghostlike from head to foot.
As he stooped, the veil hung straight down from his forehead, so that, if her eyelids had not been closed forever, the dead maiden might have seen his face.
This sister, who was then passing out of her 'teens, came to me with a very anxious face and wringing her hands, and she told me to go ben to my mother and say to her that she still had another boy.
I suppose I was an odd little figure; I have been told that my anxiety to brighten her gave my face a strained look and put a tremor into the joke (I would stand on my head in the bed, my feet against the wall, and then cry excitedly, 'Are you laughing, mother?
Keep a civil tongue in your head," cried the young man, his face paling in anger, at the insulting tone of the sailor.
continued the young man, his face clouded by a frown of worry and indecision.
Beth kept her face hidden on her mother's shoulder, but Amy stood like a graceful statue, with a most becoming ray of sunshine touching her white forehead and the flower in her hair.
No one said anything, till Laurie, who insisted on serving the bride, appeared before her, with a loaded salver in his hand and a puzzled expression on his face.
The sun was shining brightly now, and though the baby still slept, Jane could scarce restrain her impatient desire to have at least a brief glance at the beloved face.
she said aloud, turning her head swiftly and looking him straight in the face, not with the bright expression that seemed covering something, but with a look of determination, under which she concealed with difficulty the dismay she was feeling.