Maturity Date

  

Categories: Bonds

See: Maturity. It's the date the bond comes due or matures and then pays back the principal that was promised to be paid back in the first place.

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Finance: What is the Maturity of a Bond?95 Views

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finance a la shmoop what is the maturity of a bond ?oh come on.

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doorbell bash, and prank phone calls whoopee cushions for the teacher? like how mature [person rings door bell]

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is that ? right well a bond matures when it comes due. that is a company borrows a

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hundred million bucks in 2019 for ten years paying five percent interest or

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five million dollars a year to rent that money along the way, and then 2029 comes

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around and well the bond matures. and lenders have that hundred million [bond is stamped]

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dollars to the company get how much well if the company pays off its bond like it

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promised then that last year 2029 the lenders get a hundred five million

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dollars in that final year -that is they get the five million bucks in interest

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or rent on the money that year and then they get their original principal back.

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just like the person who borrowed it promised what happened that is the bond

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will have matured. so goodbye whoopee cushions, and late night parties in hello

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NPR in a responsible bedtime. [girl snores ]

Up Next

Finance: What is maturity?
1 Views

Maturity is, quite simply, the date when a debt becomes due. As for our maturity, well... we're still giggling about the word "due."

Find other enlightening terms in Shmoop Finance Genius Bar(f)