MATURITY DATE Meaning and
Definition
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Maturity date refers to the specific point or date in the future when a financial instrument, such as a bond, investment, loan, or any other contractual agreement, is set to reach its full term or become due for payment or redemption. It signifies the end of the agreed-upon period during which the terms and conditions of the instrument or agreement are in effect.
In the context of a bond or loan, the maturity date is the date at which the principal (the original amount invested or borrowed) is scheduled to be repaid in full by the borrower to the lender. This date is always mentioned in the bond or loan agreement and is typically specified in years, months, or days from the issuance or initiation of the financial instrument.
For investments, the maturity date is the date at which the investment instrument reaches its maximum term, often associated with retirement or long-term savings plans. It determines when the investor can start receiving the returns, withdraw the invested amount, or initiate a new investment cycle.
The maturity date plays a crucial role in financial planning, as it helps individuals, businesses, and organizations to plan their budgets, manage cash flows, and make informed financial decisions. It assists investors and borrowers to schedule their financial activities and ensures that both parties involved in the agreement are aware of the future obligations and rights associated with the financial instrument.
Common Misspellings for MATURITY DATE
- naturity date
- katurity date
- jaturity date
- mzturity date
- msturity date
- mwturity date
- mqturity date
- marurity date
- mafurity date
- magurity date
- mayurity date
- ma6urity date
- ma5urity date
- matyrity date
- mathrity date
- matjrity date
Etymology of MATURITY DATE
The word "maturity date" originated from the combination of two separate etymologies:
1. Maturity: The term "maturity" comes from the Latin word "maturitas", which translates to "ripeness" or "maturity". It developed from the Latin verb "maturare", meaning "to ripen". Over time, "maturity" took on the extended sense of something reaching its full development or completion, both in a physical and figurative sense.
2. Date: The word "date" has its roots in the Latin word "data", which means "a giving" or "something given". In Latin, "data" is the plural form of "datum", which refers to the given information. In the context of "maturity date", "date" refers to a specific point in time when something is due or expected.
Similar spelling word for MATURITY DATE
