Face value of bond意思

"Face value of bond" refers to the original price at which a bond is issued by a company or government entity. This is also known as the par value or the principal amount. When a bond is issued at face value, it means that investors are buying the bond for the same amount that will be repaid to them when the bond matures.

For example, if a bond has a face value of $1,000, investors will pay $1,000 for the bond, and at maturity, the bond issuer will pay the investor $1,000. However, bonds are often issued at a premium or a discount to the face value, depending on the interest rate risk and creditworthiness of the issuer.

The face value of a bond is important because it determines the amount of interest payments an investor will receive. For example, if a bond has a face value of $1,000 and a coupon rate of 5%, the investor will receive $50 in interest each year until the bond matures.

In summary, the face value of a bond is the amount that the issuer promises to pay the investor at the end of the bond's life, which can be many years into the future.