Sunday, 18 November 2012

par value

The value of a loan at the time it is made by the original investor, also known as the 'maturity value' or 'face value'. It is the amount which the issuer will pay back to the current owner ofthe bond at the agreed maturity date. For index-linked gilts, the par value is the size of the original loan uplifted to take account of inflation in the meantime.