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face value

definition

The amount that a bond holder will receive from the issuer at redemption. The face value of a bond is only one factor determining the value of a bond on the secondary market. Investors will often pay more than face value for an existing bond with higher yield than is available on a new issue. See Par.

Related Terms

 • U.S. Treasury bills  • U.S. Savings Bonds  • at par  • above par  • coupon security  • nominal share capital  • bond premium  • par
 more related terms

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