[feys val-yoo for 1; feys val-yoo for 2] 
| 1. | the value printed on the face of a stock, bond, or other financial instrument or document. |
| 2. | apparent value: Do not accept promises at face value. |
| face value n.
|
Face Value
The nominal value or dollar value of a security stated by the issuer. For stocks, it is the original cost of the stock shown on the certificate. For bonds, it is the amount paid to the holder at maturity (generally $1,000). Also known as "par value" or simply "par".
Investopedia Commentary
In bond investing, face value, or par value, is commonly referred to the amount paid to a bondholder at the maturity date, given the issuer doesn't default. However, bonds sold on the secondary market fluctuate with interest rates. For example, if interest rates are higher than the bond's coupon rate, then the bond is sold at a discount (below par). Conversely, if interest rates are lower than the bond's coupon rate, then the bond is sold at a premium (above par).
Related Links
Bond Basics Tutorial
Advanced Bond Concepts
Retail Notes Make Bond Investing Easier
See also: Bond, Denomination, Par, Par Value, Premium, Principal, Secondary Market