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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

Holding Period Return

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

Year to Date (YTD)

A period of time that starts with the first day of the current calendar year and ends with today.

Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

After-hours trading

Trading outside of a stock exchange's opening hours.

NYSE

The world's largest stock exchange. Wall St HQ.

Wall Street

A street in New York that became a figure of speech for the financial markets of the US.

LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.

Volatility

A measure of how much the prices of an asset or index vary over time.

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