Escrowed To Maturity

DEFINITION of 'Escrowed To Maturity'

The condition of a bond that has been repaid in advance by means of an escrow account, which holds the funds needed to pay the periodic coupon payments and the principal.

BREAKING DOWN 'Escrowed To Maturity'

The escrowed funds set aside for a company's debt obligations are usually invested in short-term debt securities - usually low-risk government bills - in order to protect the funds from inflationary depreciation.

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RELATED FAQS
  1. Who manages an escrow account?

    Managing an escrow account is a job for a trusted and experienced service provider. Discover the best personal finance solutions ... Read Answer >>
  2. Does the bank set up an escrow account for the buyer and seller in a home sale?

    Learn about the process of escrow and who is responsible for setting up escrow accounts for the buyer and seller in the purchase ... Read Answer >>
  3. Do mortgage escrow accounts earn interest?

    Paying down monthly mortgage escrow accounts? Will you receive any interest on this payment? If you are, should you put more ... Read Answer >>
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    Learn when and why landlords place rental property security deposits in separate escrow accounts to make sure the money is ... Read Answer >>
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    Understand how FHA mortgages require escrow accounts for property taxes, homeowners insurance and mortgage insurance premiums ... Read Answer >>
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    Learn why bond coupon payments, which are a series of fixed payments made to a bondholder throughout the life of the bond, ... Read Answer >>
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