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 ?
Basically, there is several factors influence the expatriate failure such as difficulties with the new culture Adler [1], language problem , family issues and emotional immaturity [3].
It was due to political immaturity, but it also had honesty," he said.
PESHAWAR -- PML-N leader, Rahmat Salam Khattak has condemned the raid of Khyber Pakhtunkhwa Minister for Information, Shah Farman on the residence of Pesco chief as drama showing his political immaturity.
But he also feels that, at this stage of is career, the 19-year-old needs to grow up and shake off the immaturity which is holding him back.
I think he has just showna little bit of immaturity.
The 23-year-old Irvine Meadow keeper blames immaturity for that rash action but believes there's time to make amends as he prepares for today's home game with Rob Roy.
Respondents also rated peer pressure (67%), immaturity (52%) and shortfalls in the learning process (45%) as being important risk factors.
A STUDY has revealed that men don't reach maturity or 'grow up' until they're 43 and it has helpfully produced a list of signs to help you spot the level of immaturity in your man.
If we can't convince these luvvies to respect us, maybe we should just try ridiculing them for their immaturity.
MULTAN -- Pakistan Tehreek-e-Insaf (PTI) Vice Chairman Shah Mahmood Qureshi has said that first Kalabagh Dam was made controversial due to political immaturity and now South Punjab province was suffering from political gimmickry.
His behaviour was borne out of immaturity rather than being predatory, Mr Brunt said.
The immaturity of our politicians of all persuasions continues in farcical unrestrained manner.