face value


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Related to face value: book value

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 ?
ystanbul, Ankara and yzmir were the provinces where both the total face value and the number of checks that were not honored were highest across Turkey in November.
The Royal Mint's first ever PS50 coin with the same face value |
To download the Twickets app and order tickets go to 1D.twickets.co.uk Twickets is a simple, secure fan-to-fan ticket exchange mechanism on web, mobile and social media that allows event goers to trade spare tickets for music, theatre and sporting events with fellow fans for no more than face value. It launched in 2011 and has grown to in excess of 300,000 users to date in the UK alone.
aACAo MXN 5 billion (original face value) from Banobras: Baa1/Aa1.mx
The total face value of non-performing loans across Europe is estimated by PwC to amount to EUR1.2trn, which is equivalent to approximately 3% of total banking assets.
The company's chief executive, Alan Buerger, has publicly advocated in recent months for the industry to focus more on smaller face value policies.
Accordingly, the Eurobond's price will rise to 106% of the face value form the present level near 104.5%.
My husband, determined to find a flaw in my reasoning, asked me what the face value of a Razorbacks football ticket would be if scalping were legal.
The versatile Enter The Indian, four years older than Face Value, rates a danger along with the Oliver Brady-trained top-weight One Cool Shabra, who must be one of the toughest horses in training.
Maiden Lane II's securities were typically bought and sold at only a fraction of their face value. The face value is the principal balance remaining on the underlying loan pools.
The coupon for the deal is 0.50 percent of face value, and the issue price is 82.75 percent of face value.
The bonds, the majority of which mature in the next five years, will be swapped for a combination of new longer term and lower face value bonds issued by the Greek government and the European Financial Stability Facility (EFSF).