Face Value (Par)
The nominal value of a bond that the issuer promises to repay at maturity — typically $1,000 for U.S. bonds.
Face value (also called par value or principal) is the amount the issuer will repay the bondholder at maturity. For most U.S. bonds it is $1,000. Coupon rates are expressed as a percentage of this face value.
In secondary markets, bonds trade at prices expressed per $100 of face value. A price of 97.50 means the bond costs $975 per $1,000 face value — trading at a discount. A price above 100 is a premium.
When a bond matures, the holder receives face value — regardless of what the market price was during the life of the bond. This is why buy-and-hold investors care less about short-term price fluctuations.