Definition

Noun: - The date on which a financial obligation must be repaid in full: This is the specific, pre-determined date when the principal amount of a loan, bond, or other debt instrument becomes due and payable to the lender or investor.

Usage

The term is used primarily in finance and investment contexts to specify the endpoint of a debt agreement. It is a fixed, contractual date.

Examples

• Noun:
  • The bond has a maturity date of December 31, 2030.
  • You will receive your initial investment back on the loan's maturity date.
  • The certificate of deposit reaches its maturity date next month.

Advanced Usage

• "To reach maturity": This phrase describes the moment when the maturity date arrives.
  • The treasury bill will reach maturity in six months.
• "To hold to maturity": An investment strategy where an investor keeps a bond or security until its maturity date.
  • He plans to hold the bond to maturity to receive the full face value.

Variants and Related Words

• Maturity (noun): The state of being due for payment, or the date itself. Often used interchangeably with "maturity date" in context.
  • The bond's maturity is in 2025.
• Due date (noun): A more general term for when any payment is required, which can include the maturity date for debt.
• Expiration date (noun): Commonly used for options and derivatives, similar in concept to a termination date.

Synonyms

• Redemption date: Specifically for bonds or securities that are redeemed.
• Due date: A broader synonym for when payment is required.
• Termination date: Emphasizes the end of the agreement.

Related Terms (Not Phrasal Verbs)

• Face value: The principal amount repaid on the maturity date.
• Yield to maturity (YTM): The total return anticipated on a bond if it is held until its maturity date.

Noun

1. the date on which an obligation must be repaid