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 Income (NI)

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

Time Value of Money

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

Clean price

The quoted price of a gilt, which excludes accrued interest

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.

Zero coupon bonds

What is a zero coupon bond?

Rate of Return

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

Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.

Quick ratio

Learn what quick ratio stands for in financial terms and how to calculate it.

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Maturity value