Skip to main content
Fixed Income

Bond Par Value

Bondholders are entitled to receive the face value of their bond upon maturity. This refers to the amount that the issuer of the bond has promised to pay back to the bondholder. It is usually set at the time of issuance and remains fixed throughout the life of the bond. The face value, also known as par value or principal, serves as the basis for calculating interest payments and is an important factor in determining the overall yield of a bond. Understanding the concept of face value is crucial in evaluating the potential returns and risks associated with investing in bonds.

Related terms

Reinvestment Risk

Understand the meaning and definition of Reinvestment Risk in the context of stock market, trading, and investments.

MORE
Prospectus

Understand the meaning and definition of Prospectus in the context of stock market, trading, and investments.

MORE
Red Herring

Understand the meaning and definition of Red Herring in the context of stock market, trading, and investments.

MORE
Bond Long-Term IOU

Understand the meaning and definition of Bond Long-Term IOU in the context of stock market, trading, and investments.

MORE
Marketable Securities

Understand the meaning and definition of Marketable Securities in the context of stock market, trading, and investments.

MORE
T-Bill (Treasury Bill)

Understand the meaning and definition of T-Bill (Treasury Bill) in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store