What is face value and par value, Financial Management

Assignment Help:

What is Face Value/ Par Value

Value of security as mentioned on certificate of the security.  Face values and par values are two terms that are used interchangeably.  Corporate debentures are generally issued with 100$ face values and Government bonds with 1 million $ face values.  Although the value of debenture (or Government bond) will fluctuate in price from the time they are issued until redemption, they are generally redeemed at maturity at their face value (except a premium is to be given on redemption).

Face value is the amount on which interest is calculated. So a 15 per cent debenture with a face value of 100$ will pay debenture holders 15$ per debenture per year.

 


Related Discussions:- What is face value and par value

Calculate the standard deviation , The attached file (MFR & FFM Ass Returns...

The attached file (MFR & FFM Ass Returns Data.xls) gives 132 months returns for thirty securities drawn from the FT ALL share index as well as the returns on the FT ALL share index

Determine the investment to maximize the return, Assume that the treasurer ...

Assume that the treasurer of a company has an extra cash reserve of $1,000,000 to invest for six months. The six-month interest rate is 8% per year in the U.S. and 6% per year in G

Compute the weighted average cost of capital, Q. Compute the weighted avera...

Q. Compute the weighted average cost of capital? A company's subsequent to tax specific cost of capital are as follows: Cost of debt

Define is it preferable to use an import quota or a tariff, Suppose the gov...

Suppose the government wants to limit imports of a certain good.  Is it preferable to use an import quota or a tariff?  Why? Modification in domestic consumer and producer surp

Discount rate, #quA stock has a current dividend of $0.32 with a growth rat...

#quA stock has a current dividend of $0.32 with a growth rate of 8% annually. Assuming a 10% annual discount rate, what should the price of the stock be one year from today? Answer

Define moody or standard & poor credit ratings, Why do most international b...

Why do most international bonds have high Moody’s or Standard & Poor’s credit ratings? Answer:  Moody’s Investors Service and Standard & Poor’s offer credit ratings on several

Explain the relationship between growth and inequality, While poverty reduc...

While poverty reduction has become the main goal of development efforts, there is an on-going and sometimes heated debate about the elements that would be at the center of any sens

What are the measures of growth, What are the Measures of growth Sa...

What are the Measures of growth Sales or market share Number of products or markets Employees Profit Number of retail stores

Calendar studies, Calendar Studies These attempted to predict rates of ...

Calendar Studies These attempted to predict rates of return during a calendar year and examine if there is any particular observable pattern in the rates of return on the stock

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd