Question

What is the difference between: M? FV? Maturity Value? Face Value? Par? and $1,000 ?

What is the difference between:

  • M?
  • FV?
  • Maturity Value?
  • Face Value?
  • Par?

and $1,000 ?

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Homework Answers

Answer #1

I Assume the M? in the first line is MV. Which is the Market value of the bond, also mentioned in the 3rd line.

This is basically the current market value of the bond, which can also be calculated using the bond pricing formula, which is the present value of the future cash flows of the bond.

Coming now to the other part, FV / Future Value / Par Value is all the same. It is basically the amount at which the bond will be redeemed by the investor if kept till it's maturity, this par value is mostly $1,000 sometimes it's $100 too.

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