Maturity date

Maturity date,

Definition of Maturity date:

  1. The maturity date defines the lifespan of a security, informing investors when they will receive their principal back. A 30-year mortgage thus has a maturity date three decades from one it was issued and a 2-year certificate of deposit (CD) has its maturity date twenty-four months from when it was established.

  2. Date on which a contractual agreement, financial instrument, guaranty, insurance policy, loan, or offer becomes due for settlement. Also called redemption date for investments. Used also as a synonym for settlement date.

  3. The maturity date is the date on which the principal amount of a note, draft, acceptance bond or other debt instrument becomes due. On this date, which is generally printed on the certificate of the instrument in question, the principal investment is repaid to the investor, while the interest payments that were regularly paid out during the life of the bond, cease to roll in. The maturity date also refers to the termination date (due date) on which an installment loan must be paid back in full.

How to use Maturity date in a sentence?

  1. The maturity date of the security was fixed and therefore we could plan on it being of value in the near future.
  2. Once the maturity date is reached, the interest payments regularly paid to investors cease since the debt agreement no longer exists.
  3. The maturity date is used to classify bonds into three main categories: short-term (one to three years), medium-term (10 or more years), and long term (typically 30 year Treasury bonds).
  4. The maturity date likewise refers to the due date on which a borrower must pay back an installment loan in full.
  5. The maturity date was quickly approaching and I knew we would have to pay soon, or forfeit our property to Baldwin.
  6. You need to know the maturity date of any perishable product so that it is off your shelf before that day.
  7. The maturity date refers to the moment in time when the principal of a fixed income instrument must be repaid to an investor.

Meaning of Maturity date & Maturity date Definition