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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

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

Net asset value

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

Yield curve

A graphical representation of interest rates over time

Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.

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.

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

Bond

Learn what a bond is

Unicorn

A startup valued at over £1 billion. They are rare, hence the name.

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