The full amount of a security, loan or investment before interest is added or deducted. Coupon interest is calculated on the face value of a loan or security. For example, a commonwealth bond of $100 000 has a face value of $100 000 but would usually be bought at a discount (if market rates were higher than the bond's coupon rate) and the holder would receive face value when the bond matures. Face value is the same as nominal or par value. See also: discount, nominal value, par value, yield to redemption.
|
