Definition Face Value. Description.
Face Value is the value of a debt obligation, such
as a bond, mortgage, note or equity security, as stated on the certificate
or instrument. It excludes interest and dividends.
Corporate Bonds
are usually issued with $1.000 face values, state and city municipal bonds
with $5.000 face values, and federal government bonds with $10.000 face values.
Although the price of bonds fluctuates from the date they are issued until
redemption, they are redeemed at their
Maturity Date at their Face Value,
unless the issuer defaults. If the bonds are retired before the Maturity Date,
bondholders receive a higher price then the Face Value: the
Redemption Value.
Interest on a bond is calculated on this value; for example
a $1.000, 7% corporate bond, will pay an annual interest of $70.
Also called Nominal
Value and Par Value.
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Quotes on the Value of Securities. Quotations
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Face Value Special Interest Group
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Compare with:
Redemption Value |
Maturity Date |
Yield to Maturity |
Net Present Value |
Bond Insurance
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Face Value Sponsor
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Special Interest Group Leader
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