1. What is Maturity Value?

The maturity value of a coupon bond is the total amount received at the bond's maturity date, consisting of the face value plus the final coupon payment. This represents the total return from holding the bond to maturity.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( FV \) — Face value of the bond ($)
• \( \text{Last Coupon} \) — Final coupon payment received at maturity ($)

Explanation: The formula sums the bond's principal repayment (face value) with its final interest payment to determine the total maturity value.

3. Importance of Maturity Value Calculation

Details: Calculating maturity value helps investors understand their total expected return, compare different bond investments, and plan for cash flows at maturity.

4. Using the Calculator

Tips: Enter the bond's face value and last coupon payment in dollars. Both values must be positive numbers (face value > 0, last coupon ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: Is the last coupon payment always included?
A: Yes, unless it's a zero-coupon bond, the final coupon is paid at maturity along with the face value.

Q2: How does this differ from yield to maturity?
A: Maturity value is the total dollar amount received, while YTM is the annualized rate of return considering all payments.

Q3: What if the bond has accrued interest?
A: This calculator assumes the last coupon payment covers all accrued interest up to maturity.

Q4: Does this work for all bond types?
A: This applies to standard coupon bonds. Special bonds like floating-rate or inflation-indexed may require different calculations.

Q5: How is this different from call value?
A: Maturity value is received at maturity, while call value is received if the bond is called early, which may include call premiums.