Maturity Date

The date on which a loan or investment reaches its end and the principal amount is due to be repaid.

More Details

The maturity date is the date on which the full principal amount of a debt instrument is due to be paid to the investor.

Example

As the holder of a bond with a maturity date of December 31, 2025, you are entitled to receive the full principal amount of the bond on that date. If you hold the bond until the maturity date, you will receive all of the interest payments that have been promised to you, as well as the principal amount that you initially invested. If you sell the bond before the maturity date, the price you receive may be more or less than the principal amount, depending on market conditions and the remaining time until the maturity date.

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