Investing term

What is Face value?

The amount the bond issuer promises to repay at maturity. Also called par value.

Face value (or par value) is the amount a bond issuer promises to repay the holder at maturity, and the figure the coupon percentage is calculated on. A bond's market price can trade above or below face value as interest rates move, but at maturity the holder receives exactly the face value back — assuming no default.

For example

A bond with a $1,000 face value might trade at $950 today, but the holder still collects the full $1,000 when it matures.

Face value is taught hands-on in Stage 4 — Stocks, Bonds, Cash & Alternatives.

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Related terms

AlternativesInvestments outside the core stocks/bonds/cash mix — REITs, commodities, gold, crypto.BondA loan from you to an issuer (government or company), repaid with interest on a known schedule.Capital gainThe profit from selling an investment for more than you paid.CommodityA raw physical good like gold, oil, wheat, or copper — priced by the ounce, barrel, or bushel.
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