investing

maturity

The date on which a financial instrument's principal becomes due for payment.

Example

"The 10-year bond would reach maturity in 2030, at which point he would receive his principal back."

💡 Memory Tip

When fruit is MATURE, it's ready to pick. When a bond matures, it's ready to be collected.

Etymology

From Latin 'maturitas' meaning 'ripeness' — when an investment has fully 'ripened' and is ready to be collected.

Common Misspellings

maturtymaturietymaturirymatiurity

Related Terms

bondprincipalyieldfixed income

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