What is the meaning of Par value?

Par value is the face value, or named value, of a stock or bond. With stocks, the par value, which is frequently set at $1, is used as an accounting device but has no relationship to the actual market value of the stock. But with bonds, par value, usually $1, 000, is the amount you receive when the bond is redeemed at maturity. It is also the basis on which the interest you earn on the bond is figured. For example, if you are earning 6% annual interest, that means you receive 6% of $1, 000, or $60. While the par value of a bond remains constant through its term, its market value does not. That is, a bond may trade at a premium (more than par) or at a discount (less than par) in the secondary market, based on changes in the interest rate.