Maturity date


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Maturity date

Usually used for bonds. Date that the bond finishes and is paid off. Date on which the principal amount of a note, draft, acceptance, bond, or other debt instrument becomes due and payable.

Maturity Date

The date on which the issuer of a debt instrument must repay the principal in total. For example, a bond with a period of 10 years has a maturity date 10 years after its issue. The maturity date also indicates the period of time during which the lender or bondholder will receive interest payments. It is important to note that, despite the existence of a maturity date, many debt securities are callable and the issuer may redeem them before the maturity date under some circumstances.

Maturity date.

A bond or other loan that must be repaid comes due on its maturity date. On that date, the full face value of the bond (and sometimes the final interest payment) must be paid in full to the bondholder.

Certificates of deposit (CDs) also have maturity dates on which you may withdraw the principal and interest without penalty or roll over the money into a new CD.

Other debt instruments, such as mortgage-backed securities, pay back their principal over the life of the debt, similar to the way a mortgage is amortized, or paid down. While these instruments also have a maturity date, that date is when the last installment payment of the loan as well as the last interest payment is due.

maturity date

see REDEMPTION DATE.
References in periodicals archive ?
The FSA also concluded that the bond's maturity date was the remarketing date; thus, the taxpayer should amortize the bond-issuance premium under Regs.
In essence, the FSA recognized the existence of two separate debt instruments: (1) a debt with a term from the original issue date to the remarketing date and (2) a debt that may be issued with a term from the remarketing date to the stated maturity date.
1272-1(c), which provides rules for determining the maturity date of a bond that provides the issuer or holder with an unconditional option that, if exercised, would require an alternate payment schedule.
1275-1(c)(5), in determining the payment schedule and the maturity date on a debt instrument, a holder is presumed to exercise that option in a way that maximizes yield.
If, on the other hand, the puttable/callable bond's maturity date was the stated maturity date, the lack of a known payment schedule past the remarketing date makes the tax treatment unclear.
The moral of the story is that maturity dates should be watched closely when reporting a gain on the installment method.