In finance, what is face value?


In finance, what is face value?


A bond is a promissory note that a business sells to finance their operations. A bond includes scheduled interest payments and a payment of the principal amount that the note was issued for. Bonds are rated and the rating determines the value of the bond when it is sold on the market as well as what interest rates are needed to attract a buyer.

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In finance, the face value of a bond is the amount of money that the bond pays on maturity and the amount of the bond that the company records on...

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