When an investor buys a corporate bond,the face value of the bond is

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When an investor buys a corporate bond, the face value of the bond is a loan to the corporation. The face value, also known as the par value, is the amount that the issuer (corporation) agrees to pay back to the bondholder at maturity. In return for the loan (bond purchase), the corporation pays regular interest payments (coupon rate) to the investor until the bond matures. The bondholder does not own the corporation and does not receive dividend payments.

When an Investor Buys a Corporate Bond,the Face Value of the Bond