Related Words

Balloon Maturity: Any large principal payment due at maturity for a bond or loan with or without a sinking fund requirement.

Pilot Balloon: A small balloon whose ascent is used to determine the direction and speed of low level atmospheric winds. Also known as a pibal.

Projected Maturity Date: With CMOs, the date at the end of the estimated cash flow window where final payment is made.

Principal (Face Value Or Maturity Value): The amount that will be paid on a bond at a maturity date. The original amount of money invested, excluding any interest or dividends (e.g., $1,000 to purchase a Treasury bill).

Original Maturity: Maturity at issue. For example, a five-year note has an original maturity of five years; one year later it has a maturity of four years.

Maturity Spread: The difference in returns between bonds of different time lengths.

Maturity Value: Related: Par value

Remaining Maturity: The length of time remaining until a bond comes due

Stated Maturity: At the time of issuance of a convertible security, the price the issuer effectively grants the securityholder to purchase the common stock, equal to the par value of the convertible security . . . View Full Definition

Yield To Maturity: The percentage rate of a bond or note if the investor buys and holds the security until the call date. This yield is valid only if the security is called prior to maturity. Generally bonds a . . . View Full Definition