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Friday, 07/30/2021 5:24:21 AM

Friday, July 30, 2021 5:24:21 AM

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Par value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate. The certificate is issued by the lender and given to a borrower or by a corporate issuer and given to an investor. It is a static value determined at the time of issuance and, unlike market value, it doesn’t fluctuate.

A bond’s par value is the dollar amount indicated on the certificate, wherein the calculation of interest and the actual amount to be paid to lenders at maturity date is set. A share of a stock’s par value is the minimum contribution amount made by investors to purchase one share at the time of issue.

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