Maturity value definition
/What is Maturity Value?
Maturity value is the amount due and payable to the holder of a financial obligation as of the maturity date of the obligation. The term usually refers to the remaining principal balance on a loan or bond.
In the case of a security, the combination of a higher investment in a security that generates a high rate of return will result in a higher maturity value. In addition, when this condition can be extended over a longer investment horizon, the maturity value will be even higher. Conversely, a low initial investment combined with a low rate of return and a short investment horizon will result in a relatively low maturity value.