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definition. what is the par value of a bond

definition. what is the par value of a bond

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The par or face value of bond is the amount of money that is paid to the bondholders at maturity.In other words it is the amount of money that bond issuers agree to pay to the purchaser at the time of maturity. For most of the bond par value is either $1000 or $100.Suppose if an invester purchase the bond having face value of $1000 with the maturity period of five years it menas that issuer of the bond would pay $1000 to the bondholder at the end of five year.

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