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 ?
They show that coupon face value significantly affects [F.
In the case of an FSI coupon issued by a manufacturer, though consumers patronizing different chains get coupons of the same face value, the impact of the FSI coupons on brand sales is likely to differ among the chains.
Hence, in modeling the impact of coupon face value on weekly brand sales, we must take into account not only the face value of the coupon, but also time since the coupon was dropped.
The proposed sales response model captures not only the impact of coupon face value on brand sales, but also how the impact decays over the life of the coupon.
2] captures the decaying effect of coupon face value on brand sales to the CP segment.
It indicates that the impact on sales due to a coupon drop of one dollar face value is equivalent to the sales impact of a 35-cent price reduction (to the CP segment) in the first week after coupon drop, a 12-cent ([.
i] is the face value of the coupon and G is the cost of handling coupons.
As the face value of the coupon increases, we do not expect the advertisement value to the CI segment to increase.
The predicted quantity moved at the optimal face value of 75 cents is 644.
The gross profitability of the brand is marginally higher at a coupon face value of 40 cents than in the no-coupon condition.
If a coupon of face value V is dropped in the market, the sales and profitability of the brand (in chain 1 and chain 2) can be obtained by substituting the parameter values in Equations 4 and 5, respectively.
TABLE 6 Optimal Face Value and Maximum Profit at Different Values of Coupon Face-value Sensitivity for Brand A in Market 1 Optimal V Maximum Profit [[Gamma].