What Is Face Value?


Author: Artie
Published: 22 Feb 2022

The Face Value of a Bond

The face value is the amount of money the issuer gives to the bondholder once the bond is mature. The profit on a bond may be based on the increase from a below-par original issue price and the face value at maturity, or it may be based on the additional interest rate. The face value of a stock or bond does not represent the actual market value, which is determined by principles of supply and demand often governed by the dollar figure at which investors are willing to buy and sell a particular security. The market value and face value may not have much correlation.

Market Value of the Universe

The Market Value is arrived at by taking the factors of demand supply into account. A greater demand oversupply would show an increase in the market value and a decrease in the price.

The face value of a debt document

The face value is the amount of debt that is stated in a debt document. The face value does not include interest or dividends that may be paid later on. The amount paid for a debt instrument may include a discount or premium from the face value. The issuer will redeem the debt instrument on the maturity date.

Face Values

The face value is the value shown on the face of a security certificate. It is important for bond and preferred stock investors to understand the concept.

The secondary market: borrowing or repaying?

The amount the issuer has borrowed is usually the amount you pay to buy the bond at the time it issued, and the amount you are repaid at maturity. Bonds may trade at a discount or a premium, which is more than face value, in the secondary market. The bond's market value changes frequently, based on supply and demand.


A bond is a loan between an investor and an issuer. They are investment security issued by businesses or government organizations to drive capital for an initiative.

Place Value and Face value

It is important that one understands the difference between Place and Face value. There are some key differences between them based on the placement of digits. The place value and face value are the best sources of study materials for students of different classes.

The questions are framed according to the exam perspective which will improve the students' mathematical skills. Students find it difficult to solve place value decimal problems. Students will be able to solve their mathematical problems with the help of place value and face value.

The First Postage Stamp

Postage stamps never expire. If you use the stamps today, they are worth a lot more than they were before 1935. You can make the current mail rate by putting enough of them on an envelope or package.

Face and Place Values of Digit Systems

The face value is the actual value of a digit in a number, whereas the place value is the value of a digit in a number. The face value of a number is not changeable, whereas the place value of a number is. The face value is the actual value of a digit in a number, whereas the place value is the position that a digit occupies in a number.

The face value of 5 is 5 itself, and the place value of 5 is 500. The face value of a digit is the digit itself. In 343, the face value of 3 is 3, the face value of 4 is 4 and the face value of 2 is 2.

Even and not multiple of 2 are odd numbers

An even number and not multiple of 2 are odd numbers. All the numbers that can be put into pairs are called even numbers, and all the numbers that come in the table of two are even numbers. Students can understand the number and its place value by seeing numbers on spike. Spike is helpful to understand the concept of magnitude and number.

Face value and present values

Both "face value" and "present value" are very general terms, used in a variety of situations, in which their meaning is not identical to the above described.

Permanent Life Insurance

A permanent life insurance policy is a policy that provides coverage for the entire span of your life, rather than just a specific amount of time, like term life insurance. Permanent life insurance policies are called whole life and universal life. The premium you pay for your life insurance policy is put into a cash fund, and the rest is put into the insurance.

The cash fund collects interest. The cash value of the whole life policy is the amount of money that has accumulated. Whole life and universal life policies have a cash value account.

The face value is the amount of money that your insurance provider puts toward the policy, and it is the amount that will be paid out to your beneficiaries when you pass away. Your life insurance provider can be used to file a claim when you pass away. The amount of money they receive is the face value of your policy, so they won't have access to the money that has accumulated in the cash account.

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