In insurance contexts, the 'Amount at Risk' is a key concept that refers to the potential financial loss an insurer faces, which can vary depending on the type of insurance policy.
The term 'at par' refers to a financial instrument, such as a bond, that is trading at its face value. In other words, the market price of the bond is equal to its nominal or par value.
Below Par refers to a financial security, especially a bond, that is trading at a price lower than its face or nominal value.
A deep discount bond is a debt security that sells for a substantial amount below its face value, often at a discount of more than 25%. Unlike original issue discount bonds, these bonds were initially issued at their par value but have since declined in market value.
In life insurance, a dividend addition refers to the increase in the face value of the policy, which is purchased using the dividends earned on that policy.
The term FACE can refer to various financial and business concepts, including FACE INTEREST RATE and FACE VALUE.
The Face Amount of a Bond represents the nominal or principal amount that the issuer agrees to pay the bondholder at maturity.
Face value, also known as par value, denotes the nominal or stated value a particular asset maintains, such as stocks, bonds, or other types of securities. It is predominantly utilized in the fields of finance and investment to determine the fixed worth sovereignly ascribed to an instrument.
Nominal price refers to a minimal or face value of a security at issuance, often not reflective of the current market value.
Nominal value refers to the face value of a security as stated by the issuer, often used interchangeably with 'par value.' It represents the value printed on the instrument, such as a bond or share certificate.
Equal to the established value; face amount or stated value of a negotiable instrument, stock, or bond, and not the actual value it would receive on the open market. Bills of exchange, stocks, and similar instruments are at par when they sell for their stated value.
A par bond is a bond that is selling at its nominal value or face value. This reflects a situation where the bond's market price is equal to its face value, indicating a good balance between supply and demand as well as market optimism regarding its returns.
Par value, also known as face value or nominal value, is the minimum price at which shares or other securities are issued and can be redeemed. The par value is typically set by the company at the time of issuance and does not fluctuate.
The principal amount is the face value of a financial obligation such as a bond or a loan that is required to be repaid at its maturity date, distinct from the interest accrued.
The unamortized bond discount represents the difference between a bond's face value (par value) and the proceeds received from the bond's sale by the issuing company, less the portion that has been amortized over time.
