Maturity Date

  1. The date on which the principal and any accrued interest associated with a debt must be repaid to the issuer in full.

 

  1. When applied to securities, maturity date defines the time at which principal and interest must be repaid to a holder in full. The concept of a maturity date also helps to classify a specific security as long-term, medium-term or short-term. A long-term security does not mature for more than ten years, whereas a medium-term security matures in four to ten years and a short-term security matures in one to three years. A maturity date therefore defines the scope of how long an individual will receive interest payments and the date upon which principal (and outstanding interest) will be fully returned.
  2. The date upon which a guy finally starts putting the toilet seat down (even though he still doesn’t understand why it is SUCH a big deal) simply because his mom/sister/girlfriend/roommate has asked him to.

 

EXAMPLE:

Friend One: “When are you finally going to pay me back for covering your expenses during Jake’s bachelor weekend in Vegas? I never knew anyone could eat that much. It was… jarring.”

Friend Two: “Just as soon as I reach my maturity date.”

Friend One: “You mean, as soon as one of your securities reaches its maturity date?”

Friend Two: “Sure. Let’s go with that.”