maturitydate

Maturity date refers to the date on which a financial instrument, such as a bond or a certificate of deposit (CD), reaches the end of its term. On this date, the principal amount of the investment becomes due and payable to the investor. For bonds, the maturity date signifies when the issuer repays the face value of the bond to the bondholder. For CDs, it's when the bank returns the principal plus any accrued interest to the depositor.

The maturity date is a crucial factor in determining an investment's liquidity and its sensitivity to interest rate changes. Investments with shorter maturity dates are generally considered less risky and less sensitive to interest rate fluctuations compared to those with longer maturity dates. The specific maturity dates can vary significantly, ranging from a few months to several decades, depending on the type of financial instrument and the issuer's objectives. Understanding the maturity date is essential for investors to manage their cash flow and investment portfolios effectively.