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

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4mo 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 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.


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.


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

Yes it is


What is face value in Stock Exchange?

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


What is an element of a bond?

It signifies that a corporation is in dept to the investor


Financial instrument whose value vary with the value of an underlying asset?

A financial instrument whose value varies with the value of an underlying asset is known as a derivative. Common examples include options, futures, and swaps, which derive their value from assets such as stocks, bonds, commodities, or interest rates. Derivatives are often used for hedging risks or for speculative purposes. Their value is influenced by fluctuations in the price of the underlying asset.


What is the second fixed element of a debt instrument investment?

(2) the amount of the maturity value.


What is an element of bonding?

face value similar to the principal amount of a loan.