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.
Answer and Explanation:
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...
See full answer below.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
fromChapter 25 / Lesson 16
Investors often turn to the stock and bond markets when investing their money. Each market offers opportunities and risks for the individual investor. In this lesson, we'll explore the nature of these investments.