QUICK DEFINITION
Par Value is the face amount of a bond that the issuer promises to repay at maturity, subject to the bond's terms.
WHY IT MATTERS
Why Par Value matters in bond markets
Coupons are commonly calculated from par value, while market prices may trade above or below it.
MARKET CONTEXT
How to think about it
Bond investors use par value as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is Par Value important for fixed-income investors?
← Back to the Bond Market Glossary Yes. Coupons are commonly calculated from par value, while market prices may trade above or below it.