Face Value

A fixed amount of the bond that issuer needs to pay at Maturity Date

For Example:
A bond has FACE VALUE -> $1,000:

  • Investor1 = purchases bond at premium $1,090
  • Investor2 = purchases bond at DISCOUNT $980
    Then... Bond reaches maturity date
    Both investors receives the FACE VALUE $1,000

Created: 2023-10-05 Tags: #fleeting Link: Fleeting - Bonds > Face Value