“Maturity value is the amount payable to an investor at the end of a debt instrument’s holding period (maturity date). For most bonds, the maturity value is the face amount of the bond. For some certificates of deposit (CD) and other investments, all of the interest is paid at maturity. If all of the interest is paid at maturity, each of the interest payments may be compounded. To calculate the maturity value for these investments, the investor adds all of the compounding interest to the principal amount (original investment).”

For more investment strategies, visit ETF Trends.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.