Face Value is the amount that you will be paid when the bond matures, assuming that the bond does not default. It is called face value because back when paper bond certificates were issued, it was the amount printed on the “face” meaning front of the bond certificate. If you buy a bond when it is originally issued, you normally pay the face value for the bond as well, however there are a few exceptions like zero coupon bonds. Face value is $1000 for most bonds, with the exception of T-Bills and Savings Bonds.
Featured Bonds Broker 2020
- Minimum deposit and investment just $5
- Access to Bonds, as well as Stocks and Funds
- Very user friendly platform
The face value of a bond matters not only because its how much you receive when the bond matures, but also because its how your coupon interest payment is calculated. If a bond has a face value of $1000 and a coupon interest rate of 6%, then you receive $60 per year from the bond.
After a bond is issued, its value fluctuates along with interest rates and other factors. This means that while the amount you receive back at maturity (face value) does not change, the price of a bond before maturity can be higher or lower than the bond’s face value. Another word for face value is par value.
For more definitions and explanations please visit the Learn Bonds glossary where we give the meaning of many additional bond terms.
Learn More
Buying Bonds – A How to Guide
Bond Basics – Interest and Maturity
Where To Buy Bonds?
Where to find bond prices
Glossary of Bonds Terms
A bond is when companies or goverments need to generate funds and when you invest you will receive you lump sump back with interest at the end of your agreement.
Bonds issued by the United States Department of the Treasury to finance government spending.
A Treasury Note are bonds issued by the United States Department of the Treasury and last up to 10 years.
Treasury securities are the bonds issued to investors by the U.S. government
A Municipal Bond is usually issued by local Governments to finance public projects such as roads, schools, and airports. You will recieve you lump sum and interest back at the end of the term.
A Corporate Bond is issued by businesses to raise funds for expansions or projects. You will recieve you lump sum and interest back at the end of the term.
A Bond that has no interest rate but your investments are entered into prize draws to win £25 to £1mil.
Usually offered by Banks and Building Societies, Saving Bonds will last for a fixed term and earn interest. You are not able to access the money during the fixed term.
A Fixed Bond will start and end with same Interest Rate.
Trusted & Regulated Stock & CFD Brokers
What we like
- 0% Fees on Stocks
- 5000+ Stocks, ETFs and other Markets
- Accepts Paypal Deposits
Min Deposit
$200
Charge per Trade
Zero Commission on real stocks
64 traders signed up today
Visit Now67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Available Assets
- Total Number of Stocks & Shares5000+
- US Stocks
- German Stocks
- UK Stocks
- European
- ETF Stocks
- IPO
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 Zero Commission
- NASDAQ Zero Commission
- DAX Zero Commission
- Facebook Zero Commission
- Alphabet Zero Commission
- Tesla Zero Commission
- Apple Zero Commission
- Microsoft Zero Commission
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
- Paypall
- Skrill
- Neteller
What we like
- Sign up today and get $5 free
- Fractals Available
- Paypal Available
Min Deposit
$0
Charge per Trade
$1 to $9 PCM
Visit Now
Investing in financial markets carries risk, you have the potential to lose your total investment.
Available Assets
- Total Number of Shares999
- US Stocks
- German Stocks
- UK Stocks
- European Stocks
- EFTs
- IPOs
- Funds
- Bonds
- Options
- Futures
- CFDs
- Crypto
Charge per Trade
- FTSE 100 $1 - $9 per month
- NASDAQ $1 - $9 per month
- DAX $1 - $9 per month
- Facebook $1 - $9 per month
- Alphabet $1 - $9 per month
- Telsa $1 - $9 per month
- Apple $1 - $9 per month
- Microsoft $1 - $9 per month
Deposit Method
- Wire Transfer
- Credit Cards
- Bank Account
Share
