Basic bond knowledge concepts
Views 12K Aug 9, 2023
The face value of a bond
The par value of a bond is also known as par value.
Is the amount printed on the bond.
That is, the money you can get back when the bond matures.
Suppose an one-year bond with a face value of $100
The annual interest rate is 1%.
Whether you bought it for $100
Still bought it for 98 dollars.
Or get it for $102.
Anyway, when it expires,
You take this bond.
You can get back the face value of the $100 bond and the interest of $1.
So, for the face value of the bond,
The point you need to focus on is
How much money will you get back when it is due?