See Also:
Coupon Rate Bond
Covenant Definition of a Bond Contract
Long Term Debt
Non-Investment Grade Bonds
Par Value of a BondMaturity Date Defined
In finance, a maturity date is the date on which a
debt instrument is due. For example, when a bond reaches maturity, the issuer must pay the bondholder the principle and the final
interest payment. A debt instrument’s maturity is one of the factors that determine the price and yield of the instrument. Because of the time value of money and the increased risk of volatility, debt instruments with longer maturities often have higher yields.