Par value and Face Value are terms which are used interchangeably, however Par value is used more frequently for Bonds. Par value is the ‘face value’ or the ‘nominal value’ of a bond and is assigned at the time of bond issuance. Par value is important for a bond or other fixed-income securities because it determines its maturity value as well as the interest (coupon) payments.
The market value of a bond may be ‘above or below par’, depending on certain factors like the general level of interest rates and the bond’s credit quality.
