Nimellisarvo

Nimellisarvo, or nominal value, is the value printed on a security, instrument or currency item that represents the amount the issuer promises to repay or the base amount used to calculate payments. It is not necessarily equal to the instrument’s current market price.

In the context of bonds and loans, the nimellisarvo is typically the amount repaid at maturity and the denominator for calculating coupon payments. Coupon rates are usually expressed as a percentage of the nominal value. For example, a bond with a nominal value of 1,000 euros and a 5% coupon pays 50 euros per year. The market price of the bond can be higher or lower than the nominal value, which means the yield to maturity may differ from the coupon rate.

For stocks, nimellisarvo refers to the face value assigned to each share at issuance. In many modern issuances the nominal value is small or has been eliminated, but it historically defined the company’s legal capital. Today, the market price of a share often bears little relation to its nominal value, which serves mainly accounting and regulatory purposes.

In currency and coins, the nominal value is the denomination—the amount the note or coin represents in everyday transactions. The intrinsic material value of the currency may differ from its nominal value.

Overall, nimellisarvo is a reference value used for accounting, legal capital, and payment calculations, distinct from the instrument’s market value or inflation-adjusted real value.