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

Beta

Learn what Beta stands for in finance.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Running yield

The annual interest payment (dividend) divided by the current market price of a bond.

Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.

Zero-Sum Game

A situation in which one person's gain is another's loss.

Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.

Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..

Yield curve

A graphical representation of interest rates over time

Maturity value