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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- Sophie Macon
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  18 Nov 2017 at 7:09 am
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  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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