Forfallsperiode

Forfallsperiode, also known as the period of fall or the fall period, refers to a specific time frame in the life of a financial instrument, such as a bond, where the principal amount is due to be repaid. This period is crucial for investors and issuers as it determines the timing of the return of the initial investment. The forfallsperiode can vary depending on the terms of the bond, ranging from a few years to several decades. During this period, the issuer is obligated to make regular interest payments to the bondholders, which are typically fixed and predetermined. The end of the forfallsperiode marks the maturity date, at which point the issuer must return the principal amount to the bondholders. This event is significant for both parties, as it signifies the completion of the bond's lifecycle and the final repayment of the initial investment. The forfallsperiode is a key factor in the pricing and risk assessment of bonds, influencing their yield and overall attractiveness to investors.