Definition
Face value, also known as the par value, is equal to the dollar amount the issuer pays to the investor at maturity. The price of a bond can fluctuate in the market by changes in interest rates while the face value remains fixed. Some bonds, like zero-coupon bonds, are issued at a discount to par value so the price is lower than the par value at issue. Key Takeaways Face value is equal to the dolla
In Panel Profits
In the Panel Profits market platform, How the Face Value of a Bond Differs From Its Price applies standard equities & market mechanics principles to comic assets and physical collections. Trading volume and liquidity spreads reflect secondary market dealer and auction transactions.
Common mistakes
Do not infer unobserved prices.