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