/

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.

‍

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

OEIC

Unique to the UK, these funds pool together money to invest from multiple investors.

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

Oligopoly

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

After-hours trading

Trading outside of a stock exchange's opening hours.

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

Holding Period Return

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

Custodian bank

Learn what a custodian bank is.

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Net Income (NI)

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

You’re just minutes away from commission-free investing

When you invest, your capital is at risk

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

© 2026 Freetrade, All rights reserved. The Apple logo is a trademark of Apple Inc. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.