Face Value
Face value is the monetary value of a security, as stated by the issuer. It is also known as par value or nominal value. It is the amount a security will be worth when it matures, and is typically equal to the issue price. Face value is important because it is used to calculate coupon payments and the return on investment.
History of Face Value
The concept of face value dates back to the 16th century, when it was used to refer to the value of coins. In the modern financial world, face value is used to refer to the value of securities such as bonds and stocks. Face value is important because it is used to calculate coupon payments and the return on investment.
Comparison Table
| Term | Definition |
|---|---|
| Face Value | The monetary value of a security, as stated by the issuer. |
| Par Value | The face value of a security. |
| Nominal Value | The face value of a security. |
| Issue Price | The price at which a security is issued. |
Summary
Face value is the monetary value of a security, as stated by the issuer. It is also known as par value or nominal value. It is the amount a security will be worth when it matures, and is typically equal to the issue price. Face value is important because it is used to calculate coupon payments and the return on investment. For more information about face value, you can visit Investopedia, The Balance, and Investing Answers.
See Also
- Coupon Payment
- Return on Investment
- Issue Price
- Par Value
- Nominal Value
- Maturity Date
- Yield to Maturity
- Interest Rate
- Bond Price
- Stock Price
