Maturity
Maturity is a financial term that refers to the date on which a loan, bond, or other financial instrument becomes due and is repaid to the lender or investor. It is the date on which the principal amount of the loan or bond is repaid, along with any accrued interest. Maturity is an important concept in finance, as it determines when the lender or investor will receive their money back.
History of Maturity
The concept of maturity dates back to the early days of banking and finance. In the past, loans and bonds were often issued with a set maturity date, meaning that the borrower had to repay the loan or bond on that date. This allowed lenders and investors to know when they would receive their money back. Over time, the concept of maturity has evolved, and today it is used to refer to any financial instrument that has a set date on which it must be repaid.
Comparison Table
| Type of Financial Instrument | Maturity Date |
|---|---|
| Loan | Date on which the loan must be repaid |
| Bond | Date on which the bond must be repaid |
| Investment | Date on which the investment must be repaid |
Summary
Maturity is a financial term that refers to the date on which a loan, bond, or other financial instrument becomes due and is repaid to the lender or investor. It is an important concept in finance, as it determines when the lender or investor will receive their money back. For more information about maturity, you can visit websites such as Investopedia, The Balance, and Bankrate.
See Also
- Interest Rate
- Yield
- Principal
- Default
- Credit Rating
- Debt
- Bond Rating
- Coupon Rate
- Maturity Date
- Interest Payment
