Face value
Principles of Finance glossary · Valuation of Bonds & Stocks
Definition
The principal amount of a bond, returned at maturity.
Face value in plain English
Face value is the "sticker" amount printed on a bond — the original loan that gets paid back in full on the day the bond matures (ends). When you buy a bond, you're really lending money to a company or government; the face value (often $1,000) is the principal they promise to return to you at the finish line, separate from the interest they pay you along the way. Think of it like a gift card that says $50 on the front: that number is fixed no matter what you paid for it. The price you actually pay in the market can be higher or lower, but the face value is the fixed sum you're owed at maturity.
Learn these first
Related Principles of Finance terms
Principles of Finance practice questions · Principles of Finance flashcards · Principles of Finance study guide