Face Value

The dollar amount assigned to a security by the issuer.

For a debt security, face value is the amount repaid to the investor when the bond matures (usually, corporate bonds have a face value of $1000, municipal bonds $5000, and federal bonds $10,000).

In the secondary market, a bond's price fluctuates with interest rates.

Advisors Assistant uses the term only when associated with fixed income obligations, such as bonds.