Maturity

Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest rate and commodity swaps, options, loans and fixed income instruments such as bonds. They are sometimes altered by bonus rates as part of promotions. A bond's term to maturity is the length of time during which the owner will receive interest payments on the investment. When the bond reaches maturity the principal is repaid.

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