™For a $1,000 bond, even a small change connected to face value can affect income, market value or sensitivity to rates.
Bonds & Rates
Face value
The principal amount an issuer agrees to repay at a bond’s maturity, subject to credit risk.
Plain-English context
Why it matters
Fixed-income terms connect promised cash flows with interest-rate, credit and purchasing-power risk.
Assuming Face value has one universal interpretation without checking the source, rules, timeframe or methodology.
Use current definitions. Product terms, tax treatment and market rules can change. Confirm important details with official disclosures, regulators and regulated providers.