Face value, also called par, is the amount the issuer pays at maturity. It is fixed when the bill is created. It does not change with rates, and it is the amount you own, not the amount you pay.
How prices relate to it
Bill prices are stated per 100 of face value. To find your cost, multiply the face value by the price and divide by 100. US bills trade in multiples of 100, and other markets set their own minimums and increments.
Purchase cost
Cost = Face value × Price ÷ 100
Income at maturity
Income = Face value − Cost
Try it: cost from face value and price
US bills come in multiples of 100.
- Cost
- 9,898.89
- Income at maturity
- 101.11
- Paid at maturity
- 10,000.00
- Valid US increment
- Yes
Illustrative numbers you can change. Not a quote or a market rate.
Key points
- Face value is what is paid at maturity.
- Prices are quoted per 100 of face value.
- Face value comes in fixed increments.
General information only. It is not investment, legal or tax advice. Details vary by market and can change, so check the issuer’s current rules.