Maturity Date


DEFINITION of 'Maturity Date'

The date on which the principal amount of a note, draft, acceptance bond or other 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.


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BREAKING DOWN 'Maturity Date'

The maturity date tells you when you will get your principal back and for how long you will receive interest payments. However, it is important to note that some debt instruments, such as fixed-income securities, are "callable", which means that the issuer of the debt is able to pay back the principal at any time. Thus, investors should inquire, before buying any fixed-income securities, whether the bond is callable or not.

  1. Par

    Short for "par value," par can refer to bonds, preferred stock, ...
  2. Maturity

    The period of time for which a financial instrument remains outstanding. ...
  3. Bond

    A debt investment in which an investor loans money to an entity ...
  4. Undated Issue

    A government bond that has no maturity date, and pays interest ...
  5. Broken Date

    A term used to describe forward and money market contracts, with ...
  6. Callable Bond

    A bond that can be redeemed by the issuer prior to its maturity. ...
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