What is 'Maturity value'? | Freetrade Dictionary

What's the maturity value of a bond?

The maturity value of a bond is the amount of money that an investor will be repaid when a bond’s term ends.

‍

The maturity value may also be called a bond’s face value, the principal, or par.

‍

This value is typically reflective of the amount of money that has been borrowed by the issuer of the bond, excluding interest payments.

‍

In the case of a zero coupon bond, the maturity value represents both the original amount borrowed, plus an additional sum that represents the return on the bond that the borrower receives in return for the loan.

More terms

Volatility

A measure of how much the prices of an asset or index vary over time.

Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.

ESG investing

ESG is a hot topic right now for investors. Understand what ESG investing is all about and how you can use it to diversify your portfolio.

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Diversification

An investment strategy in which money is put into a variety assets.

Limit order

Learn what a limit order is and how to use it to make the most of your portfolio.

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Maturity value