Maturity Value

Maturity value is the total amount a bondholder receives on the bond's maturity date, comprising the repayment of the original face value (principal) along with the final coupon payment due at that date. For standard coupon-paying bonds, the maturity value equals the face value plus the last interest payment. For zero coupon bonds, the maturity value is simply the face value—since no periodic interest is paid, the entire return is embedded in the discount at which the bond was originally purchased. Knowing the maturity value allows investors to calculate their total return on a held-to-maturity basis and plan for specific future cash flow requirements.