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Maturity value

Maturity value

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

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Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Rate of Return

Profit on an investment, expressed as a percentage of the investment.

Income statement

A summary of a company's income and expenses over a set period of time.

Quick ratio

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Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

index-linked gilts

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Running yield

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

Net Asset Value (NAV)

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

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