To calculate carrying value, you need the bond’s face value and the unamortized premium or discount. As an example, let’s say that a 10-year bond with a $25,000 face value sold for $27,000.

Multiply the face value of the bond by the present value of $1 factor previously determined. In the example, $100,000 times 0.6139 equals $61,390, or $100,000 x 0.6139 = $61,390.

Stocks' face value is their original listed value; bonds' face value is what's paid at maturity. Face value affects bond interest (coupon rate); buying undervalued bonds can boost yields. In the ...