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Yes, the face value of a financial instrument is the same as its principal amount.

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7mo ago

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What is financial instrument?

Another term for financial market instrument is a derivative. It means it derives its value from something else. i.e. stock options derive there value from stocks. If you are investing avoid them. There is a significant amount of hidden leverage in derivatives.


What is financial market instrument?

Another term for financial market instrument is a derivative. It means it derives its value from something else. i.e. stock options derive there value from stocks. If you are investing avoid them. There is a significant amount of hidden leverage in derivatives.


How do you calculate nominal value?

Nominal value, often referred to as face value, is calculated as the stated value of a financial instrument or asset without adjusting for inflation or other factors. For bonds, it represents the amount paid back to bondholders at maturity. For stocks, it is the par value assigned to shares when they are issued. It can simply be expressed as the price or value listed on the financial instrument itself.


What is face value?

the value printed on the face of a stock,bond or other financial instrument or document


What is the original amount borrowed or invested is called the?

The original amount borrowed or invested is called the principal. This is the initial sum of money on which interest is calculated, representing the core value of the loan or investment before any interest or returns are applied. Understanding the principal is crucial for calculating interest and determining the overall financial implications of a loan or investment.


What is deravaties?

Derivatives are financial instruments that normally peg their value to another financial instrument. For example, an option or a future is a derivative because it gets its value from a stock or bond.


Is a marriage certificate a negotiable instrument?

No, a marriage certificate is not a negotiable instrument. A negotiable instrument, such as a check or promissory note, is a written document that guarantees the payment of a specific amount of money to the holder. In contrast, a marriage certificate serves as a legal proof of marriage and does not represent a financial value or transferable right.


how do you calculate the interest rate when principal amount and maturity value are given?

To calculate the interest rate when the principal amount and maturity value are given, you can use the formula: [ \text{Interest Rate} = \left( \frac{\text{Maturity Value} - \text{Principal}}{\text{Principal}} \right) \times \frac{1}{t} ] where ( t ) is the time period in years. Rearranging this, you can find the interest earned and then divide by the principal and the time to get the annual interest rate.


Is The maturity value of a loan is the total amount of principal and interest that must be repaid?

Yes it is


What is the principal amount of a bond that is repaid at the end of the term called?

The principal amount of a bond that is repaid at the end of the term is called the "face value" or "par value." This is the amount that the bond issuer agrees to pay the bondholder upon maturity. It is also the basis for calculating interest payments, which are typically expressed as a percentage of the face value.


What is principal debt?

Principal debt refers to the original sum of money borrowed in a loan or the face value of a bond, excluding any interest or fees. It represents the amount that the borrower is obligated to repay to the lender over the life of the loan. As payments are made, the principal balance decreases, impacting the overall interest owed. Understanding principal debt is crucial for managing repayments and financial planning.


What is face value in Stock Exchange?

Amount stated on the face of the instrument without regard to market value.