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Maturity is a life of security. It may also refer to the final payment date of a loan or other financial instrument, at which point all remaining interest and principal is due to be paid.
[edit] Overview
1, 3, 6 months maturity band can be calculated by using 30-day per month periods. For maturity bands over a year it is acceptable to use 365 day per year. For example with a Treasury Bond, its maturity is the date on which the principal is paid.
[edit] Maturity date
Maturity date is a finance term referring to the date when a principal amount of a note, draft, acceptance bond, or other debt instrument becomes due or payable. It is also a termination or due date on which an instalment loan must be paid in full. For example, a bond due to mature on January 1, 2010, will return the bondholder's principal and final interest payment when it reaches its maturity date.
A serial maturity is when bonds are all issued at the same time but come due on different staggered redemption dates. A series maturity is when bonds come due on different dates staggered apart because they were issued at different times. A term maturity date is when all bonds issued come due at the same time.
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