Maturity, date the maturity date defines the lifespan of a security, informing you when you will get your principal back and for how long you will receive interest payments.
A short-term bond matures in one to three years, a medium-term bond matures in four to 10 years and a long-term bond matures in over 10 years.
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.
Auto loans and business loans work the same way.This means the organization you bought your bond from must give you back your original investment on that date.This is for a couple of reasons.This is a glaring example of how inflation becomes greater over time.The concept of a maturity date applies to a variety of financial obligations.A maturity date is a deadline for settling a financial agreement.Loan, maturity, when you have a 30-year mortgage, it means the mortgage matures in 30 years.See also edit, references edit.Typically, one party owes another party a sum local adult sex and dating websites of money by the maturity date.Definition of Springing, maturity, date in, credit Agreement, springing.Next Up, breaking down '.The new owner would then get the original investment back on the maturity date.To illustrate, consider the situation of an investor who in 1986 bought a 30-year Treasury bond with a maturity date of May 26, 2016.A serial maturity is when bonds are all issued at the same time but are divided into different classes with different, staggered redemption dates.
Life Insurance, maturity, whole life insurance policies usually mature when you, the policyholder, turns 100.