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maturity |
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Maturity For a bond, the date on which the principal is required to be repaid. In an interest rate swap, the date that the swap stops accruing interest. Maturity The time when the issuer of a bond or other debt security must repay the principal or when a borrower must repay a loan in full. For example, if a company issues $1 million in bonds with a maturity of 10 years, the company must repay $1 million to bondholders 10 years after the issue. The amount owed at maturity is usually the same as the debt or loan's face value. After maturity, the loan or debt ceases to exist, assuming all parties have fulfilled their obligations. See also: Expiration.
maturity The date on which the remaining balance of a promissory note is due. Maturity The period until the last payment is due. The maturity is usually but not always the same as the period used to calculate the mortgage payment. See Term. Maturity What Does Maturity Mean? (1) The length of time until the principal amount of a bond must be repaid. (2) The end of the life of a security. Investopedia explains Maturity In other words, the maturity is the date on which the borrower must pay back the money he or she borrowed through the issuance of a bond. Related Terms: Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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