what is mature value? banking
Answers
Answered by
2
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.
Answered by
9
Answer:
Maturity value is the amount to be received on the due date or on the maturity of instrument/security that investor is holding over its period of time and it is calculated by multiplying the principal amount to the compounding interest which is further calculated by one plus rate of interest to the power which is time
To estimate the maturity value of an investment, we use the future value of an ordinary annuity or annuity due. MS Excel's FV function can easily estimate the maturity amount. But future value of an annuity assumes that the streams of investments are constant over time.
_____________________
Hope it helps you ✌
WITH REGARDS
❤ AR + NAV ❤
Similar questions