Looking for ways to **calculate **the **face value **of a **bond **in **Excel**? Then this is the right article for you. We will show you **3** different formulas to calculate the **face value **of a **bond **in **Excel**.

**Table of Contents**hide

## Download Practice Workbook

## Bond and Face Value

A fixed-income tool used by investors to borrow money from the **Capital Market** is called a **Bond**. Companies, governments, and business entities use bonds to raise funds from the **Capital Market**. The owners of **bonds **are the debtholders, creditors, or **bond **issuers. Therefore, the **bond price** is the present discounted value of the future cash stream generated by a bond. It refers to the accumulation of all likely **Coupon **payments and the present value of the par value at maturity.

The principal amount of the **bond **is called the **face value **of the **bond**. This reflects how much a bond is worth when it matures. This is also known as the **par value**.

## 3 Handy Approaches to Calculate Face Value of Bond in Excel

To demonstrate our methods, we have picked a dataset with **2** columns: “**Bond** **Particulars**” and “**Value**”. For the first **2** methods, we will find the **face value **of a **Coupon Bond **and for the last method, we will find the **face value **of a **Zero Coupon** **Bond**. Moreover, we have these values given to us beforehand:

**Coupon Bond**Price.- Number of Year Until Maturity (
**t**). - The number of the Compounding Per Year (
**n**). - Yield to Maturity-YTM (
**r**). - Annual Coupon Rate. For
**Zero Coupon****Bond**, this value will be zero (**0%**). - Coupon (
**c**).

Using these values, we will find the **face value **of a **Bond **in **Excel**.

### 1. Using Coupon to Calculate Face Value of a Bond in Excel

For the first method, we will use the multiplication of the coupon (**c**) by the number of compounding per year (**n**), and then divide it by the **Annual Coupon Rate** to **calculate **the **face value **of a **bond**.

Our formula will look like this.

**Steps:**

- To begin with, type the following formula in cell
.*C11*

`=C10*C7/C9`

- Lastly, press
and we will get the*ENTER***face value**of the**bond**.

We have **calculated **that the **face value **of a bond with a coupon price of **$25**, the coupon rate of **5%** compounded semi-annually is** $1000**.

**Read More: How to Calculate Price of a Semi Annual Coupon Bond in Excel (2 Ways)**

### 2. Finding Face Value from Bond Price

For the second method, we will derive our formula from the coupon bond price formula, and using that we will **calculate **the **face value**. Our formula looks like this. This time, the coupon price is not directly provided in the example.

**Steps:**

- First, type the following formula in cell
.*C10*

`=C5/(C9/C7*((1-(1+C8/C7)^-(C7*C6))/(C8/C7))+(1+C8/C7)^-(C7*C6))`

- Then, press
.*ENTER*

We have **calculated **that the **face value **of a **bond **with a price of **$1081.76**, **t** = **10** years, **n** = **2**, **r** = **4%**, and an annual coupon rate = **5%** is **$1000**.

**Read More: Calculate Bond Price from Yield in Excel (3 Easy Ways)**

### 3. Calculating Face Value for Zero Coupon Bond in Excel

For the last method, we will find the **face value **for a **Zero Coupon** **Bond **in **Excel**. We will use the following formula. Remember, the **Annual Coupon Rate** is **0%** for a **Zero Coupon Bond**.

**Steps:**

- Firstly, type this formula in cell
.*C10*

`=C5*(1+C8/C7)^(C7*C6)`

- Then, press
.*ENTER*

So, with a** Zero Coupon Bond price** of **$1345.94**, **t** = **10** years, **n** = **2**, **r** = **4%**, the **face value **will be **$2000**.

**Read More: How to Calculate the Issue Price of a Bond in Excel**

## Practice Section

We have added a practice dataset for each method in the **Excel** file. Therefore, you can follow along with our methods easily.

## Conclusion

We have shown you **3** formulas to **calculate** the **face value** of a **bond **in **Excel**. If you face any problems regarding these methods or have any feedback for me, feel free to comment below. Moreover, you can visit our site **ExcelDemy** for more **Excel-related** articles. Thanks for reading, keep excelling!

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