Face Value / Par Value

The face value, or par value, of a bond is the principal amount the bond itself is worth. When you hear someone referring to a bond as a $1,000 bond, they are referring to the face, or par, value.

The term face value got its name because the value of the bond is literally printed on the face, or front, of the bond certificate. For instance, if a bond has a face value of $1,000, the bond certificate will state $1,000 on the front.

You can see on the image of the $1,000,000 Treasury Bond below that the face value is clearly $1,000,000.