If you’re an equity investor, you buy stocks at the current market price and hope they appreciate. For debt investors, it’s the opposite concept. Investors buy bonds based on their face value: the ...

The face value of a share of stock is known as its par value, which is the legal capital of each share of stock. A business must retain this legal capital in its business and may not pay it out as ...

Carrying value equals bond face value plus unamortized premiums or minus discounts. Calculate it using face, current term, and premium or discount per year. Investors use carrying value to assess bond ...