Maturity: A loan's maturity is the life of the loan; that is, how long you have to repay the loan. It usually applies to term loans and not lines of credit.

 

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Maturity: A loan's maturity is the life of the loan; that is, how long you have to repay the loan. It usually applies to term loans and not lines of credit.

Maturity Value: Related: Par value

Return-To-Maturity Expectations: A variant of pure expectations theory that suggests that the return an investor will realize by rolling over short-term bonds to some investment horizon will be the same as holding a zero-co . . . View Full Definition

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).

Average Maturity: The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with longer average maturity.

Yield To Maturity (YTM): Yield to maturity is the most precise measure of a bond's anticipated return and determines its current market price. YTM takes into account the coupon rate and the current interest rate in . . . View Full Definition

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

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.

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

Maturity Date: A bond or other loan that must be repaid comes due on its maturity date. On that date, the full face value of the bond (and sometimes the final interest payment) must be paid in full to the . . . View Full Definition