Principal and maturity
The face or principal amount is the amount the issuer promises to repay under the bond terms, usually at maturity.
Longer maturities generally expose investors to more uncertainty about future rates and inflation.
Coupons
Many bonds make periodic coupon payments. The coupon rate is set relative to the bond’s face value, not its changing market price.
Some bonds use different payment structures, so the instrument terms always matter.
Price can move
A bond can trade above or below face value before maturity.
Interest rates, credit quality, liquidity and remaining maturity all influence market price.
General information only. Investment products can lose value, and terms, fees and regulation can change.