By Leanna Kelly If you’re an equity investor, you buy stocks at the current market price and hope they appreciate. For debt investors, it’s the opposite concept. Investors buy bonds based on their face value: the amount of money the bond will be worth at maturity. In other words, it’s the contractual amount that is to be repaid to the lender. It’s also known as par value.
Face value is one of the biggest advantages of investing in debt securities: you know exactly how much you’re entitled to when an investment fully matures. It’s why many investors buy bonds, and even more trade them. …read more
