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NOMINAL VALUE (OF A DEBT INSTRUMENT)

Statistics Directorate    
Definition:
The nominal value of a debt instrument is the amount that at any moment in time the debtor owes to the creditor at that moment; this value is typically established by reference to the terms of a contract between the debtor and creditor.

Context:
The nominal value of a debt instrument reflects the value of the debt at creation, and any subsequent economic flows, such as transactions (for example, repayment of principal), valuation changes (independent of changes in its market price), and other changes.

Conceptually, the nominal value of a debt instrument can be calculated by discounting future interest and principal payments at the existing contractual interest rate(s) on the instrument; the latter may be fixed rate or variable-rate.

Source Publication:
IMF, 2003, External Debt Statistics: Guide for Compilers and Users – Appendix III, Glossary, IMF, Washington DC.

Cross References:
Market valuation

Hyperlink:
http://www.imf.org/external/pubs/ft/eds/Eng/Guide/index.htm

Statistical Theme: Financial statistics

Created on Thursday, August 28, 2003

Last updated on Wednesday, April 7, 2004