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The face value, sometimes called nominal value, is the value of a coin, bond, stamp or paper money as printed on the coin, stamp or bill itself [1] by the issuing authority. The face value of coins, stamps, or bill is usually its legal value.
This date is set at the beginning of the bond’s term and can range from one day to 100 years, although most long-term bonds mature around 30 years. Face value: This is how much your bond will be ...
The face value of bonds can vary based on the type of bond and when it matures. Some corporate bonds and Treasury bonds , for instance, hold a minimum face value of $1,000 — which is what you ...
The bond's market price is usually expressed as a percentage of nominal value: 100% of face value, "at par", corresponds to a price of 100; prices can be above par (bond is priced at greater than 100), which is called trading at a premium, or below par (bond is priced at less than 100), which is called trading at a discount.
A zero-coupon bond is a type of bond that pays no interest and trades at a discounted face value. The investor pays less than the bond’s face value and later receives the full value of the bond ...
In simple terms, the notional principal amount is essentially how much of an asset or bonds a person owns. For example, if a premium bond were bought for £1, then the notional principal amount would be the face value amount of the premium bond that £1 was able to purchase. Hence, the notional principal amount is the quantity of the assets and ...
Bonds are sold at less than face value, for example, a $50 Series EE bond may cost $25. Bonds accrue interest, and your gains are compounded, meaning that interest is earned on interest.
Par value also refers to the official gold content of a currency. The Act to Amend the Par Value Modification Act of 1973 of September 21, 1973 lowered the par value of the dollar against gold from $35 to $42.2222 where it remains today. This is why the face value of a 1 oz gold coin is $50, reflecting the par value of the dollar in gold.