face value
The amount of money the borrower promises to return to you at the end of a bond agreement. If you bought a bond for one thousand dollars and that is what they pay back at the end, one thousand dollars is the face value.
Where it is explained in full
Money at every level: what changes as the numbers grow, from a first paycheck to a hundred million. The rules are the same for everyone and the useful ones change at every level. This page walks the whole ladder, what becomes possible at each rung, and the one line that runs through all of it. It explains; it never advises.
Bonds and Treasuries: lending money, with a price that moves. A bond is a loan you make. The interest is fixed, the price is not, and the relationship between the two confuses nearly everyone the first time.
A definition says what a thing is; it never says whether it fits you. The guides explain how it works and name the professional who confirms it for a particular person. The No Advice Disclosure.
Words beside it
- Enterprise value
What it would cost to buy a whole company: market value plus debt minus cash.
- Intrinsic value (options)
The amount an option is in the money: for a call, stock price minus strike, if positive.
- Lifetime value (LTV)
What a customer pays over the time they stay, minus what they cost to serve.
- Net asset value
A fund's total holdings minus liabilities, divided by shares outstanding. Computed daily for mutual funds.
- Par value
A bond's face value.
- Time value
The portion of an option's premium above intrinsic value, reflecting remaining time and expected movement.
Ask about face value
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