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Definition of face value
Payment at the maturity of the bond. Also called par value or maturity value.
See: Par value.
The maturity value of a security. Also known as par value,
The nominal value of a security. Also called the par value.
The nominal value which appears on the face of a document recording an entitlement, generally an amount of money that has to be repaid on the maturity of a debt instrument.
The payoff value of a bond upon maturity. Also called par value. See principal.
The principal amount of the mortgage as of its issue date.
This term refers to the simultaneous issue of a life annuity with a non-guaranteed period and a guaranteed life insurance policy [usually whole life or term to 100]. The face value of the life insurance would be the same amount that was used to purchase the annuity. This combination of life annuity providing the highest payout of all types of annuities, along with a guaranteed life insurance policy allowed an uninsurable person to convert his/her RRSP into the best choice of annuity and guarantee that upon his/her death, the full value of the annuity would be paid tax free through the life insurance policy to his family members. However, in the early 1990's, the Federal tax authorities put a stop to the issuing of standard life rates to rated or uninsurable applicants. Insuring a life annuity in this manner is still an excellent way to provide guaranteed tax free funds to family members but the application for the annuity and the application for the life insurance are separate transactions and today, most likely conducted through two different insurance companies so that there is no suspicion of preferential treatment given to the life insurance application.
A short-term credit investment created by a non-financial firm and guaranteed by a
A financial asset taking the form of a promise by a borrower to repay a specified amount (the bond's face value) on a maturity date and to make fixed periodic interest payments.
A debt security issued by a government or company. You receive regular interest payments at specified rates while you hold the bond and you receive the face value when it matures. Short-term bonds mature in less than five years; medium-term bonds mature in six to ten years; and long-term bonds mature in eleven years or greater.
A bond issued each year by the federal government. These bonds can be cashed in at any time for their full face value.
The periodic interest payment(s) made by the issuer of a bond
Annual interest payment as a percentage of face value.
A bond with no coupons, priced below its face value; the return on this bond comes from the difference between its face value and its current price.
Non-interest-bearing money market instruments that are issued at a discount and
Percentage of face value at which a bond is quoted.
This is a recently coined phrase describing the concept of using Universal Life Insurance to tax shelter earnings which can be used to generate tax-free income in retirement. The concept has been described by some as "the most effective tax-neutralization strategy that exists in Canada today."
Time at which a bond can be redeemed for its face value.
The date when the issuer returns the final face value of a bond
Also called the maturity value or face value, the amount that the issuer agrees to pay at the maturity date.
Nominal value of a security. Same as face value.
The maturity or face value of a security or other financial
See face value.
The original amount loaned, which is repaid plus interest. See face value.
Generally, refers to the face value of a debt.
Principal only (PO)
A mortgage-backed security in which the holder receives only principal cash flows on
Tax anticipation bills (TABs)
Special bills that the Treasury occasionally issues that mature on corporate
Short-term U.S. government security issued at a discount from
Long-term debt obligation of the U.S. government that makes
A security that makes no interest payments; it is sold at a discount
Zero-coupon bond, or Zero
A bond that, instead of carrying a coupon, is sold
The sum of all the interest options in your policy, including interest.
An amount of money invested plus the interest earned on that money.
Adjusted present value (APV)
The net present value analysis of an asset if financed solely by equity
approximated net realizable value at split-off allocation
a method of allocating joint cost to joint products using a
The amount of cash payable on a benefit.
With respect to convertible bonds, the value the security would have if it were not convertible
A company's book value is its total assets minus intangible assets and liabilities, such as debt. A
An asset’s cost basis minus accumulated depreciation.
The value of an asset as carried on the balance sheet of a
An asset’s original cost, less any depreciation that has been subsequently incurred.
Net worth of the firm’s assets or liabilities according
book value and book value per share
Generally speaking, these terms
BOOK VALUE OF COMMON STOCK
The theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. Book value equals:
Book value per share
The ratio of stockholder equity to the average number of common shares. Book value
Book Value per Share
The book value of a company divided by the number of shares
an activity that is necessary for the operation of the business but for which a customer would not want to pay
CAPITAL IN EXCESS OF PAR VALUE
What a company collected when it sold stock for more than the par value per share.
An amount the insurance company will pay if the policyholder ends a whole life
Cash Surrender Value
This is the amount available to the owner of a life insurance policy upon voluntary termination of the policy before it becomes payable by the death of the life insured. This does not apply to term insurance but only to those policies which have reduced paid up values and cash surrender values. A cash surrender in lieu of death benefit usually has tax implications.
Cash Surrender Value
Benefit that entitles a policy owner to an amount of money upon cancellation of a policy.
Cash value added (CVA)
A method of investment appraisal that calculates the ratio of the net present value of an
Also called parity value, the value of a convertible security if it is converted immediately.
Economic Value Added (EVA)
Operating profit, adjusted to remove distortions caused by certain accounting rules, less a charge
economic value added (EVA)
a measure of the extent to which income exceeds the dollar cost of capital; calculated
economic value added (EVA)
Term used by the consulting firm Stern Stewart for profit remaining after deduction of the cost
The amount of advantage over a current market transaction provided by an in-the-money
The value that an asset is expected to have at the time it is sold at a predetermined
The weighted average of a probability distribution.
The value of the possible outcomes of a variable weighted by the
Expected value of perfect information
The expected value if the future uncertain outcomes could be known
Extraordinary positive value
A positive net present value.
Fair market value
The price that an asset or service will fetch on the open market.
Fair Market Value
The highest price available, expressed in terms of cash, in an open and unrestricted market between informed, prudent parties acting at arm's length and under no compulsion to transact.
The amount at which an asset could be purchased or sold or a liability incurred or
Firm's net value of debt
Total firm value minus total firm debt.
The amount of cash at a specified date in the future that is equivalent in value to a specified
The amount a given payment, or series of payments, will be worth
the amount to which one or more sums of
The value that a sum of money (the present value) earning
Amount to which an investment will grow after earning interest.
The amount to which a payment or series of payments will grow by a given future date when compounded by a given interest rate. FVIF future value interest factor.
Intrinsic value of a firm
The present value of a firm's expected future net cash flows discounted by the
Intrinsic value of an option
The amount by which an option is in-the-money. An option which is not in-themoney
Net amount that could be realized by selling the assets of a firm after paying the debt.
The net proceeds (after taxes and expenses) of selling the assets
Net proceeds that would be realized by selling the firm’s assets and paying off its creditors.
The amount a policyholder may borrow against a whole life insurance policy at the interest rate
1) The price at which a security is trading and could presumably be purchased or sold.
The price at which a product or service could be sold on the open market.
A quoted market price per unit times the number of units being valued. Synonymous
market value added
Market value of equity minus book value.
market-value balance sheet
Financial statement that uses the market value of all assets and liabilities.
Market value ratios
Ratios that relate the market price of the firm's common stock to selected financial
Market value-weighted index
An index of a group of securities computed by calculating a weighted average
Related: par value.
Net adjusted present value
The adjusted present value minus the initial cost of an investment.
net asset value
The value of all the holdings of a mutual fund, less the fund's liabilities.
Net asset value (NAV)
The value of a fund's investments. For a mutual fund, the net asset value per share
Net book value
The current book value of an asset or liability; that is, its original book value net of any
Net present value
A discounted cash flow methodology that uses a required rate of
net present value method
a process that uses the discounted
Net present value (NPV)
The present value of the expected future cash flows minus the cost.
Net present value (NPV)
A discounted cash flow technique used for investment appraisal that calculates the present value of future cash flows and deducts the initial capital investment.
net present value (NPV)
Equals the present value (PV) of a capital investment
Net Present Value (NPV)
The present value of all future cash inflows minus the present value
net present value (NPV)
the difference between the present values of all cash inflows and outflows for an investment project
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