In finance, maturity or maturity date refers to the final payment date of a loan or other financial instrumentat which point the principal and all remaining interest is due to be Maturity date of loan. 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 other forms of security such as redeemable preference shares, provided their terms of issue specify a date.
It is similar in meaning to 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 security itself, for example, In the market today the yields on ten-year maturities increased means the prices of bonds due to mature in ten years fell, and thus the redemption yield on those bonds increased.
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Bond Debenture Fixed income. Accrual bond Auction rate security Callable bond Commercial paper Contingent convertible bond Convertible bond Exchangeable bond Extendible bond Fixed rate bond Floating rate note High-yield debt Inflation-indexed bond Inverse floating rate note Perpetual bond Puttable bond Reverse convertible securities Zero-coupon bond.
Asset-backed security Collateralized debt obligation Collateralized mortgage obligation Commercial mortgage-backed security Mortgage-backed security. Retrieved from " https: Articles lacking sources from May All articles lacking sources All stub articles. Views Read Edit View history.
You can help Wikipedia by expanding it. The maturity date is the date when the principal amount of a note, draft or It is also the termination or due date on which an installment loan must be paid in full. A mortgage is a fixed-term loan; it can run 10, 15, 20 or, most commonly, 30 years.
The end of that term is known as the maturity date. Definition of maturity date: Date on which a contractual agreement, financial instrument, guaranty, insurance policy, loan, or offer becomes due for settlement.