# How Maturity Is Calculated?

There is a formula for calculating the maturity value. The formula has V, P, r and n as variables. The maturity value is V, the original principal amount is P, and the number of compounding intervals is n. The periodic interest rate is represented by the variabler.

## What is maturity value example?

The maturity value is the amount due and payable to the holder at a certain point in time. The remaining principal balance is usually referred to as the term. The maturity value is the same as the par value for a security.

## What happens when a loan matures?

The loan maturity date is when the final loan payment will be made. The promissory note that is a record of the original debt is retired when the payment is made. In the case of a secured loan, the lender doesn’t have a claim to the borrower’s assets.

## What is yield to maturity rate?

The yield to maturity is the percentage rate of return for a bond if the investor holds it until it matures. All of its remaining coupon payments are summed up. The yield to maturity of a bond depends on the market value and how many payments remain to be made.

## What does bond maturity mean?

There are key things to take away. The term to maturity is when the owner of the bond will receive interest payments. The owner of the bond is repaid its par when the bond matures.