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

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Venture Capital Trust (VCT)

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

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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American Depository Receipts (ADRs)

Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

Zero-Sum Game

A situation in which one person's gain is another's loss.

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

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Maturity value