Plain-English definitions, reviewed by an independent investor
Face Value (Par Value)
Face value is the amount a bond or note promises to repay at maturity, printed on the instrument.
Face value is the amount a bond or note promises to repay at maturity, printed on the instrument.
(Fixed at issue; not the market price)
Why it matters
It anchors coupon math and tells you what you get back at maturity.
Common confusion
Market price wanders above or below face value as rates move; they are not the same.
Frequently Asked Questions
Is face value the price I pay?
No. You may buy above or below face value; you still get face value at maturity.
Do stocks have face value?
Some have a nominal par, but it is meaningless next to market price.