it owes you the amount shown on the face of the bond, known as par value, plus interest at maturity. Maturity date is the length of time until the bond’s principal is scheduled to be repaid.

The bond is a promise to repay its face value—the amount loaned—with an additional specified interest rate within a specified period of time. The bond, therefore, may be called an IOU.

In return, the company agrees to pay interest (typically twice per year) and then repay the face value of the bond once it matures. Let's use a typical fixed-rate bond as an example. If you invest ...

If interest rates rise substantially, selling a bond before maturity might mean you won’t get the price you paid for it. Yet you’ll likely get the face value of the bond if you wait until it ...

Usually, the process involves verifying the bondholder’s identity, determining the bond’s value based on issue dates and ...

Then you can bid at one of the regularly held auctions. The minimum purchase is $100 (even though T-bonds have a face value of $1,000). Financial institutions, such as banks or brokerage firms ...

Par value is far more important for bond investors. The par value of a bond, also known as face value or nominal value, is the price the bond will be redeemed for at maturity. "It's typically set ...

Arvind Ven, founder and CEO of Capital V Group Investors can buy these bonds at face value when issued or trade them on the secondary market. Face value is the amount you must pay to buy a bond.