MATURITY VALUE Meaning and
Definition
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Maturity value refers to the final amount of money that is owed to the investor or creditor after the completion of a financial instrument's term, typically a bond or a fixed deposit. Also known as face value, par value, or principal amount, the maturity value is the original amount of money that is borrowed or invested.
In the context of bonds, maturity value is the amount that the bond issuer is obligated to pay back to the bondholder at the bond's maturity date. It represents the return of the principal investment and is usually paid in addition to periodic interest payments over the life of the bond.
For fixed deposits or certificates of deposit, maturity value symbolizes the total principal amount that is due to the investor upon the deposit reaching its maturity period. This value includes both the principal and any accumulated interest the account has earned.
Maturity value is a crucial factor for investors and creditors as it determines the total amount they will receive at the end of the investment or lending term. It helps individuals and institutions evaluate the profitability and potential returns of a financial instrument. The maturity value is typically predetermined and stated in the terms and conditions of the instrument, making it a significant consideration for investors and lenders when making financial decisions.
Common Misspellings for MATURITY VALUE
- naturity value
- katurity value
- jaturity value
- mzturity value
- msturity value
- mwturity value
- mqturity value
- marurity value
- mafurity value
- magurity value
- mayurity value
- ma6urity value
- ma5urity value
- matyrity value
- mathrity value
- matjrity value
- matirity value
- mat8rity value
- mat7rity value
- matueity value
Etymology of MATURITY VALUE
The term "maturity value" does not have an extensive etymology as it is a relatively modern financial term used to describe the final amount that an investment or financial instrument will reach at the end of its maturity period. However, both words in the term have their own etymology:
1. Maturity: The word "maturity" derives from the Latin word "maturus", meaning ripe, fully developed, or mature. It evolved through Old French and Middle English before assuming its current meaning of being fully grown or developed, which is applicable to various contexts including finance.
2. Value: "Value" originates from the Latin word "valere", meaning to be strong, to have worth, or to be of importance. Its usage has evolved throughout history and languages to describe the worth or importance of something, including financial terms like "maturity value".
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