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.

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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

Mutual funds and investment trusts are priced on their net asset value (NAV).

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.

Net Asset Value (NAV)

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

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

Fundamentals

The data or information that is likely to impact a company's stock price.

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

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.

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

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