Par Value
Par value, or face value, is the amount the issuer promises to repay the bondholder at maturity. It also serves as the base for calculating periodic coupon payments.
Example: A corporate bond with a par value of $1,000 pays a 4% coupon, equating to $40 per year, typically in semiannual installments, and is redeemed for $1,000 at maturity.
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