Is the correct term 'bold face lie' or 'bald faced lie' or another variation?

The original term seems to have been bald-faced (bare-faced) and refers to a face without whiskers. Beards were commonly worn by businessmen in the 18th and 19th century as an attempt to mask facial expressions when making business deals. Thus a bald-faced liar was a very good liar indeed, and was able to lie without the guilt showing on his face.

The more correct term is "bald-faced lie" or "bare-faced lie" (bare is more common in Great Britain). It refers to a "shameless" or "brazen" lie. One where the teller does not attempt to hide his face while telling it.

It's just the last 5 yrs or so that "bold" has come into usage. It refers to typeface. It is used metaphorically in speech. In the same way that a typesetter uses bold face type to highlight specific text and set it apart, a bold face lie stands out in such a way as to not be mistaken for the truth.

More Information

The phrase can either be used as bold-faced lie, as in someone with a bold enough face to lie (bold meaning daring, or brazen) or someone bold enough to lie to your face; it can also be used as bald-faced lie, where the older meaning of bald (meaning uncovered or unconcealed) - the more correct usage with this term is bare-faced lie. Earlier editions of Merriam Webster define bold-faced as someone being bold or forward, with no relation to lies.