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

Capital

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Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.
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Maturity date

The date on which a gilt is redeemed and the gilt holder receives the repayment of the nominal amount and final dividend or coupon payment.
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Yield to maturity

What is yield to maturity and why is it useful?
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Yield

Income from an investment as a percentage of its current price.
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Beta

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Time Value of Money

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

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Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.
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