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.

Before making an investment, you need to understand the fundamental terms associated with bonds. Also referred to as Face Value or Par Value, the principal is the amount the issuer agrees to repay ...

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 ...

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

Electronic savings bonds are sold at face value, and you can buy them in penny increments from $25 to $10,000 every calendar year. To get the maximum value of a savings bond, you'll need to hold ...

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 ...

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.