What is the difference between Face Value and Investment Amount | Vested

What is the difference between Face Value and Investment Amount?

The Face Value of a bond refers to the predetermined amount at which the issuer will redeem the bond at its maturity. On the other hand, the Investment Amount represents the minimum sum required to purchase a bond, as set by the issuer. In essence, the Face Value signifies the bond's redemption value, while the Investment Amount is the initial capital needed to acquire the bond.


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