Par or Face Value refers to the initial value of a bond when it is issued, as determined by the issuer company/institution.It is the amount that the bondholder will receive from the issuer upon maturity.
For example, if a bond has a face value of Rs. 1,000, the investor will receive Rs. 1,000 when the bond reaches maturity.
Unlike bond price, it remains fixed throughout the tenor of the bond
Upon maturity, the issuer is obligated to repay the bondholder the Face Value of the bond. This means that the bondholder will receive the full Face Value amount, regardless of any market fluctuations or changes in the bond's price during its lifetime.