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.

‍

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

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).

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

Quick ratio

Learn what quick ratio stands for in financial terms and how to calculate it.

ESG investing

ESG is a hot topic right now for investors. Understand what ESG investing is all about and how you can use it to diversify your portfolio.

Zero-Sum Game

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

Yield curve

A graphical representation of interest rates over time

Dividends

Find out what dividends are and how they can contribute to the growth of your investment portfolio.

Maturity value