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LogoutWhen a corporation or government issues a bond, the par value indicates how much money the bond will be worth when it matures. If a bond with a par value of $100 is acquired with a one-year maturity date, the bondholder is entitled to receive $100 from the issuing firm at the end of that year, in addition to any interest payments the bond generated.
The majority of private investors purchase bonds as a safe haven investment. The yield is paid in increments until the bond expires, generating income. The investor then receives his or her initial money back. To put it another way, they want to keep the bond until it matures.