Basic bond knowledge concepts

Views 11K Aug 9, 2023

The face value of a bond

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The par value of a bond is also known as par value.

Is the amount printed on the bond.

That is, the money you can get back when the bond matures.

Suppose an one-year bond with a face value of $100

The annual interest rate is 1%.

Whether you bought it for $100

Still bought it for 98 dollars.

Or get it for $102.

Anyway, when it expires,

You take this bond.

You can get back the face value of the $100 bond and the interest of $1.

So, for the face value of the bond,

The point you need to focus on is

How much money will you get back when it is due?

Disclaimer: The above content does not constitute any act of financial product marketing, investment offer, or financial advice. Before making any investment decision, investors should consider the risk factors related to investment products based on their own circumstances and consult professional investment advisors where necessary.