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

Forms of bank finance, Q. Forms of Bank Finance? A firm can draw funds ...

Q. Forms of Bank Finance? A firm can draw funds from a bank within the maximum credit limit sanctioned. It can draw funds in the following forms: 1) Overdraft 2) Cash Cre

Calculate weighted average cost of capital, Ocean Blue Vessels Ltd is a rea...

Ocean Blue Vessels Ltd is a real Liner firm whose capital structure consists of debt, preference shares and equity shares. The company plans to raise further capital for its expans

Option-adjusted spread (oas), Option-Adjusted Spread (OAS) The prime ob...

Option-Adjusted Spread (OAS) The prime objective of an investor is to buy securities which have values greater than their market prices. The discussion made on the above valuat

Show social and regulatory factors, Q. Show Social and Regulatory Factors? ...

Q. Show Social and Regulatory Factors? Regulatory climate and legislation against the environmental degradation may impair the profitability of the industry. Price control, vol

Write out the equation or draw the budget line, You have $21 to spend on pr...

You have $21 to spend on prawns and potatoes. Prawns cost $20 per kilo and potatoes cost $2 per kilo.   (a) Supposing you can buy as much or as little as you want of prawns and

Pull strategy, Pull Strategy Pull strategy define a marketing appr...

Pull Strategy Pull strategy define a marketing approach in which a manufacturer promotes a product directly to consumers in the hopes that the consumers will then request

Operating cycle, discuss an operating cycle of vegetable growing in Uganda

discuss an operating cycle of vegetable growing in Uganda

Financial evaluation and decision making, Financial Evaluation and Decision...

Financial Evaluation and Decision Making: The final major element of financial management is the evaluation of the information provided through the accounting and budget proces

International financial management - a European perspective , To whom it ma...

To whom it may concern, I wanna someone to help me to get prepared for my exam. is it possible to work together? 1. Managerial Aspects of the Market for Foreign Exchange

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