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 ?
Salem Al Housani, Acting Deputy Director General for Information & e-Government Sector, said, "This achievement comes one year after announcing TRA as the entity responsible for smart government and digital transformation of the UAE's model of digital government maturity.
Full of practical help, "Cultivating Spiritual Maturity" cites dozens of examples relative to spiritual authority, doubt and confusion, a life of practice, and the facing and embracing of death.
However, as per product policy, NBP announced 5.50 percent to 9 percent profit for the NBP Premium Saver Accounts having deposits up to one million rupees while deposits having more amount than one million rupees received 4.50 percent to 8 percent profit depending on their maturity timeframe.
As such, maturity risk is evaluated by not only focusing on IBR utilization, but also the combined non-payment status, changes to bond term and overall amortization trends.
Lessing's study was based on the hypothesis that existing information security governance models are similar to information security maturity models (ISMMs).
Furthermore, this operation will allow Eutelsat to extend its debt maturity profile.
Respondents were asked to rate their IT risk management maturity on the 5 level Capability Maturity Model Integration (CMMI) scale.
ACC Legal Operations Maturity Model, Toolkit and Webinar Series will be a great resource in helping legal operations professionals provide greater value to their organizations.
In a new research report published by the International Institute for Analytics (IIA) and sponsored by enterprise data science software maker Dataiku, a correlation has been drawn between 'analytics maturity' and the increased performance for companies, including higher shareholder returns.
The interest rate has been increased to 5 percent from 4.25 percent for the maturity bucket of 180 days to less than one year.
The fruit was precooled for 24 hours and sorted for uniform size and maturity and any fruits with wounds or rots were removed.
Seven fodder species, namely, Trifolium alexandrinum, Trifolium resupinatum, Avena sativa, Triticum aestivum, Hordeum vulgare, Brassica campestris, Cichorium intybus; and seven grass species, namely, Pennisetum purpureum, Panicum antidotale, Cenchrus ciliaris, Pennisetum orientale, Setaria anceps and Atriplex lentiformis were evaluated at early, mid and late stages of maturity. At each maturity, samples were collected from four replicate plots of each species, and subsequently analyzed for the contents of dry matter (DM) and nutrient composition.