Does the face value of a bond include issuance costs (printing costs, legal fees, sales commissions associated with the bond issue)? If yes, then is the market rate of interest and coupon rate applicable to face value inclusive of issuance costs to get interest expense and coupon interest amount respectively?

Hey @Ruben, face value of a bond is the amount of money a holder will get back once a bond matures. I'm not aware that these include any other admin/issuance costs related to the bond issuance at all, that should be separate/excluded.

A CFA General Discussion About Amortization Of Bond Issue Costs

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This topic has 1 reply, 2 voices, and was last updated Nov-177:09 am by Sophie Macon.

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- Ruben
  Participant
  16 Nov 2017 at 5:44 pm
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  ::
  Does the face value of a bond include issuance costs (printing costs,
  legal fees, sales commissions associated with the bond issue)? If yes,
  then is the market rate of interest and coupon rate applicable to face
  value inclusive of issuance costs to get interest expense and coupon
  interest amount respectively?
- Sophie Macon
  Keymaster
  18 Nov 2017 at 7:09 am
  Up
  2
  ::
  Hey @Ruben, face value of a bond is the amount of money a holder will get back once a bond matures. I’m not aware that these include any other admin/issuance costs related to the bond issuance at all, that should be separate/excluded.
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