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Maturity (finance)

 

 
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Maturity (finance)
 
  Maturity is a life of security. It may also refer to the final payment date of a loan
Loan

A loan is a type of debt. This article focuses exclusively on monetary loans, although, in practice, any material object might be lent. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the wiktionary:lender and the wiktionary:borrower....
 or other financial instrument, at which point all remaining interest
Interest

Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money , or, money earned by deposited funds .Assets that are sometimes lent with interest include money, shares, consumer goods through hire purchase, major assets such as aircraft finance, and even entire factories in finance lease arrangements....
 and principal is due to be paid.

Overview

1, 3, 6 months maturity band can be calculated by using 30-day per month periods. For maturity bands over a year it is acceptable to use 365 day per year. For example with a Treasury Bond, its maturity is the date on which the principal is paid.

Maturity date

Maturity date is a finance term referring to the date when a principal amount of a note
Note

In music, the term note has two primary meanings: 1) a sign used in musical notation to represent the relative duration and pitch of a sound; and 2) a pitched sound itself....
, draft, acceptance bond
Bond (finance)

In finance, a bond is a debt security , in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest and/or to repay the principal at a later date, termed Maturity ....
, or other debt instrument becomes due or payable. It is also a termination or due date on which an installment loan must be paid in full. For example, a bond due to mature on January 1, 2010, will return the bondholder's principal
Debt

Debt is that which is owed; usually referencing assets owed, but the term can cover other obligations. In the case of assets, debt is a means of using future purchasing power in the present before a summation has been earned....
 and final interest
Interest

Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money , or, money earned by deposited funds .Assets that are sometimes lent with interest include money, shares, consumer goods through hire purchase, major assets such as aircraft finance, and even entire factories in finance lease arrangements....
 payment when it reaches its maturity date.

A serial maturity is when bonds are all issued at the same time but come due on different staggered redemption dates. A series maturity is when bonds come due on different dates staggered apart because they were issued at different times. A term maturity date is when all bonds issued come due at the same time.