Maturity Date

A Maturity Date is a due date in which a debt instrument must be paid in full and interest payment stops.

• AKA: Maturity.
• Context:
  • It ranges from being a Fixed Maturity Date to being a Serial Maturity.
• See: Settlement Date, Principal, Interest Rate.

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References

2016

• (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/Maturity_(finance)
  • In finance, maturity or maturity date refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

The term fixed maturity is applicable to any form of financial instrument under which the loan is due to be repaid on a fixed date. This includes fixed interest and variable rate loans or debt instruments, whatever they are called, and also other forms of security such as redeemable preference shares, provided their terms of issue specify a date. It is similar in meaning to 'redemption date'. However some such instruments may have no fixed maturity date. Loans with no maturity date continue indefinitely (unless repayment is agreed between the borrower and the lenders at some point) and may be known as 'perpetual stocks'. Some instruments have a range of possible maturity dates, and such stocks can usually be repaid at any time within that range, as chosen by the borrower.

A serial maturity is when bonds are all issued at the same time but are divided into different classes with different, staggered redemption dates.

In the financial press the term maturity is sometimes used as shorthand for the securities themselves, for instance In the market today, the yields on 10 year maturities increased means that the prices of bonds due to mature in 10 years time fell, and thus the redemption yield on those bonds increased.

2016

• (Investopedia, 2016) ⇒ http://www.investopedia.com/terms/m/maturitydate.asp
  • QUOTE: Maturity date is the date on which the principal amount of a note, draft, acceptance bond or another debt instrument becomes due and is repaid to the investor and interest payments stop. It is also the termination or due date on which an installment loan must be paid in full.

2008

• (MA DoR, 2008) ⇒ Massachussets DoR. (2008). “Municipal Finance Glossary.” Massachussets Department of Revenue - Division of Local Services
  • QUOTE: Maturity Date – The date that the principal of a bond becomes due and payable in full.

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