• A bond’s face value refers to how much a bond will be worth on its maturity date.
  • The price you pay for a bond may be different from its face value, and will change over the life of the bond, depending on factors like the bond’s time to maturity and the interest rate environment. But the face value does not change.
  • The face value of the bond and the investment value/price of the bond will only be the same when the coupon rate and the yield (YTM) of the bond at the point of issue are the same.
  • The coupon payments will be applicable on the face value (coupon rate x FV) and not on the price you pay to buy the bond.