Nominal value is a term used in both finance and economics to refer to an original, unadjusted value. In finance, nominal value refers to the face value or par value of a security. For instance, a 10-year bond with a nominal face value of $1,000 entitles the holder to $1,000 in 10 years.  In addition, if the bond pays 7% interest, the holder is entitled to $700 per year (7% x the nominal value of $1,000) for the life of the bond.  Nominal value is also important when pricing bonds in the secondary markets, because bonds are traded as percentages of their nominal value. The bond’s price will be different from its nominal value when the prevailing interest rate for similar bonds is below or above the stated rate for the bond in question.  In economics, nominal value refers to a number or measurement that has not been adjusted for inflation.  Adjusting an economic measure, such as GDP or income per capita, for inflation converts the numbers to real values that can be compared to one another. For example, a yearly salary of $10,000 was a very high salary in 1915, but is below the US poverty line in 2015.  To make an accurate comparison of purchasing power, however, the 1915 nominal value must be adjusted to 2015 values. For the record, a $10,000 salary in 1915 had the same purchasing power as a $232,500 salary in 2015.