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A bond's stated value — the amount you're repaid at maturity. Often $1,000.
Why It Matters
Face value (also called par) is the size of the loan a bond represents and the amount returned at maturity. The coupon is calculated from it. A bond's market price can trade above or below face value, but the repayment at the end is the face value.
Key Points
- Also called "par value"; commonly $1,000 per bond
- The coupon interest is a percentage of face value
- Market price can be higher or lower than face value before maturity
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What Are Bonds?
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Common Questions
A bond's stated value — the amount you're repaid at maturity. Often $1,000. Face value (also called par) is the size of the loan a bond represents and the amount returned at maturity. The coupon is calculated from it.
Face value (also called par) is the size of the loan a bond represents and the amount returned at maturity. The coupon is calculated from it. A bond's market price can trade above or below face value, but the repayment at the end is the face value.
Also called "par value"; commonly $1,000 per bond
The coupon interest is a percentage of face value
Market price can be higher or lower than face value before maturity