The face value of a bond refers to the nominal or par value assigned to the bond when it is initially issued. It is a fixed amount that the bondholder will receive upon maturity, regardless of the market value or fluctuations in interest rates. The face value is typically stated on the f...
The face value of a bond, also called its par value, is the price you pay for it. Although a bond's current value can change over time, the face value remains the same. Bond Interest Rates The annual interest rate a bond pays is expressed as a percentage of par, or face value, at...
What is the face value of a bond? What are the other names of the face value?Bonds:Bonds are options for a retirement plan since they offer a stable series of cash inflows in the future. The stability of cash flows will secure the future financial health for investo...
000 now on a 10-year zero-coupon bond with a face value of $20,000. In a decade, when the bond is mature, you’ll receive a payment of $20,000. Perhaps the best-known example of a zero-coupon bond is a US savings bond. Note: Investors interested in bonds may also consider ...
What's the value to you of a 1,000 face-value bond with an 8% coupon rate when your required rate of return is 15 percent? ___A_A Less than its face valueB 1,000C TrueD More than its face value 相关知识点: 试题来源: 解析 A 当必要收益率高于债券的票面利率时,债券的市场价...
Why would someone buy a bond at a premium? What is the effective interest rate for a bond? What is the face value of a bond payable? How do you compute the selling price of a bond? What is the stated interest rate of a bond payable?
Par value, coupon rate, maturity date You need to understand these terms to compare bonds properly. Par value– this is the face value. We also call it theprinciple. It is the sum of money the lender will receive when the bond has reached maturity. In most cases, the par value of bon...
Face value is a term that is commonly used in the stock market and refers to the original cost of a share of stock, or the amount of money that a bond or note promises to repay at maturity. It is also known as "par value." The face value is typically printed on the stock certific...
What Does Bond Mean? Contents[show] Typically, a bond is issued at a discount or premium depending on themarket rate of interest. The bondholder pays the face value of the bond to the bond issuer. The bond is then paid back to the bondholder at maturity with monthly, semi-annual, or ...
Bond values are very sensitive to market interest rates. For example, if you purchased bond with a stated/coupon rate of 10% and market rates had declined to 8% since you purchased the bond, then the value of your 10% bond in a market crediting 8% would