What is 'maturity value'? Definition & meaning

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.

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

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

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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

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

Venture Capital

A type of financing that investors provide to startups, who sometimes announce getting said financing in TechCrunch, to big fanfare.

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

Equity

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

Zero-Sum Game

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

Withholding Tax

A tax deduction made at the source of the payment.

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

Maturity value