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

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.

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Alpha

The percentage by which an investor outperforms a relevant benchmark.

Withholding Tax

A tax deduction made at the source of the payment.

Key Information Document (KID)

A document issued by an investment fund to help investors determine if it's the right fund for them.

Professional Client

An investor that is able to meet several regulatory criteria.

Yield to maturity (YTM)

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Quick ratio

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OEIC

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Maturity value