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

Determine the cash flow budget - monthly cash disbursement, Your friend Pet...

Your friend Peter is planning to set up a new business which will manufacture and sell wooden tables. The parts that make up the table consist of a wooden table top measuring 1m by

Measure a project’s risk as the change in the cv, Define why we measure a p...

Define why we measure a project’s risk as the change in the CV. We calculate a project’s risk as the change in the coefficient of variation since this focuses on the change in

Brixton plans to sell the applicable computer, Brixton Products is consider...

Brixton Products is considering the purchase of a new $520,000 computer-based entry order system.  The cost of the system will be depreciated on a straight-line basis over its five

Capital structure, name the concept which increases the return on equity sh...

name the concept which increases the return on equity shares by changing the capital structure of the co.

Define the term- future cost and historical cost, Define the term- Future C...

Define the term- Future Cost and Historical Cost Future cost of capital refers to expected cost of funds to be raised to finance a project. In contrast, historical cost signifi

Cost of capital, what is the cost of capital and advantages of it?

what is the cost of capital and advantages of it?

Negotiating and closing transaction, Negotiating and Closing Transaction: ...

Negotiating and Closing Transaction: A diverse set of skills and very thorough preparation is required for negotiating and closing a divestiture transaction. Facts and informat

Investment banker do when underwriting new security issue, What does an inv...

What does an investment banker do when underwriting a new security issue for a corporation? While underwriting a new security issue an investment banker buys it and after that re

Multicollinearity, Multicollinearity As the degree of correlation betwe...

Multicollinearity As the degree of correlation between the independent variables increases, the regression coefficients become less reliable. That is, although the independent

Explain implications of deviations - purchasing power parity, Explain the i...

Explain the implications of the deviations from the purchasing power parity for countries’ competitive positions in the world market. Answer:  If exchange rate changes satisfy pu

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