Bonds are debt securities governments, municipalities, and corporations issued to raise capital. When you buy a bond, you are lending money to the issuer in exchange for periodic interest payments and the return of the bond's face value at maturity. Let us have a detailed look into how bonds work and how to invest in them. weighing bonds What to Know About Bonds Bond Face Value (Par Value) The bond's face value, or par value, is the amount it will be worth at its maturity date. It is the reference amount that the bond issuer uses to calculate interest payments. For example, if a bond has a face value of $1,000, the bondholder will receive $1,000 when the bond matures. The face value is also the amount on which interest payments are based. Bond Coupon Rate The coupon rate is the interest rate that the bond issuer agrees to pay annually on the face value of the bond. This rate is expressed as a percentage. For instance, if a bond has a face value of $1,000 and a coupon...