MATURITY VALUES Meaning and
Definition
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Maturity values refer to the final amount or worth of an investment or financial product at the time of its maturity. Maturity value is commonly used in the context of bonds, certificates of deposit (CDs), insurance policies, and other investments that have a specific maturity date or period.
When an investment reaches its maturity date, the maturity value represents the total principal amount plus any accumulated interest or returns that have been earned over the investment's lifespan. It indicates the final payout that the investor can expect to receive once the investment has reached its predetermined term.
Bonds, for instance, are debt instruments with fixed interest rates and maturity dates. The maturity value of a bond is the face value or par value of the bond that will be paid back to the bondholder upon maturity. The maturity value is determined by the terms and conditions set forth in the bond contract.
Similarly, CDs are time deposits offered by banks or financial institutions that have a fixed maturity date. The maturity value of a CD includes both the principal amount deposited and the interest earned over the CD's term. This final amount is paid back to the depositor when the CD matures.
Understanding maturity values is crucial for investors, as it helps in evaluating the potential returns and planning for financial goals. It allows investors to assess the amount of money they can expect to receive at the end of an investment's term and make informed decisions regarding their investment portfolios.
Common Misspellings for MATURITY VALUES
- naturity values
- katurity values
- jaturity values
- mzturity values
- msturity values
- mwturity values
- mqturity values
- marurity values
- mafurity values
- magurity values
- mayurity values
- ma6urity values
- ma5urity values
- matyrity values
- mathrity values
- matjrity values
- matirity values
- mat8rity values
- mat7rity values
Etymology of MATURITY VALUES
The word "maturity values" does not have a specific etymology as it is a combination of two commonly used English words, "maturity" and "values".
- "Maturity" comes from the Latin word "maturitas", meaning ripeness or fullness. It can refer to the state of being fully grown or developed, both physically and mentally, or it can describe the quality of behaving in a sensible, responsible, and adult-like manner. In financial terms, "maturity" is often used to describe the date when a debt or investment is due for repayment or when it reaches its full term.
- "Values" comes from the Latin word "valere", meaning to be of worth or to have strength. It refers to the moral principles, beliefs, and standards that individuals or groups consider important and use to guide their behavior and decision-making.
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