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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

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

Income statement

A summary of a company's income and expenses over a set period of time.

Yield to maturity

What is yield to maturity and why is it useful?

Clean price

The quoted price of a gilt, which excludes accrued interest

Dirty price

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

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

Base rate

What's the base rate?

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

Key Information Document (KID)

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

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