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 payment of a financial obligation is due. In the case of a bond, the maturity date is the one on which the issuer must retire the bond by paying the face value of the bond to its owners. Shares of stock do not have specific maturity dates.
Case Study In late 1995, BellSouth became only the fifth company in 40 years to issue bonds with 100-year maturities. The AAA-rated bonds carried a 7% coupon that was 70 basis points higher than 30-year Treasury bonds yielded when the BellSouth bonds were priced. Because it is impossible to know what the next 100 years will bring, bonds with such long maturities subject investors to substantial risk. Renewed inflation, for example, could undermine the purchasing power of the interest payments a bondholder received. Likewise, competition in the communications industry might shake the financial stability of a company long protected by regulation. In addition, changes in market rates of interest have a significant impact on the price of bonds with long maturities. On the plus side though, this BellSouth bond presented investors with a chance to lock in for a long period what at the time appeared to be an attractive yield. If inflation and interest rates remain low for decades, the bonds could turn out to be a profitable investment.

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.

References in periodicals archive ?
Furthermore, about 50% of the leveraged loan debt coming due between 2008 and 2010 is rated 'B+' or below, and about 25% is rated single-B and below.
Lending for commercial projects has stalled and many are concerned that developers will be unable to refinance $400 billion in commercial real estate debt that is coming due this year.
In Hill's analysis of the governor's budget, she recommends that the Legislature not adopt that proposal, and instead pay down the reserve, or prepay other debt that is coming due in 2007-08 or 2008-09.
That means examining loans that are coming due in both the short and the medium term, and refinancing multiple properties, even if it means paying a prepayment penalty for the right to get out of existing debt.
The decree paves the way for the government's highly-touted - but still unclear - plan to swap $20-$25 billion in old debt coming due over the next few years for new instruments with longer maturities.
The company intends to seek an arrangement with the holders of such mortgage debt permitting the deferral, at least through the end of fiscal 1992, of principal and interest coming due on such obligations; however, no assurance can be given that the company will be successful in reaching any such arrangement.
Debt maturities of $19 million in 2007 and $23 million in 2008 and 2009 are relatively light, with no large maturities coming due until 2010, when $200 million in notes mature.
Women's retailer Chico's has hired a consultant to help it renegotiate, renew or end 340 of its leases coming due through 2011.
The owner had a $27 million loan coming due on the properties and was only able to achieve traditional first mortgage financing proceeds of $24 million at an interest rate of 6.