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Investing & the Stock Market vocabulary · Bonds & Fixed Income

Maturity

Meaning in investing & the stock market, with examples

/məˈtʃʊrəti/nounCore term

In investing & the stock market, maturity means: The date when a bond or other debt must be repaid in full, or the length of time until that date.

In Turkish: vade, vade sonu, itfa tarihi

How it is used

Used for bonds, bills and deposits. A bond matures or reaches maturity; investors hold it to maturity or sell earlier. People compare short, medium and long maturities, and the 'yield to maturity' is the total expected return if held until the end.

Example sentences

  1. The bond has a maturity of ten years and pays interest every six months.

  2. If you hold the bond to maturity, price swings in between do not affect your final return.

Common collocations

  • hold to maturity
  • yield to maturity
  • maturity date
  • short maturity
  • reach maturity
  • bondA loan that an investor gives to a government or company. The issuer usually pays regular interest and returns the original amount on a fixed date.
  • couponThe regular interest payment on a bond, or the interest rate the bond pays each year on its face value, fixed when the bond is issued.
  • yieldThe income an investment produces, shown as a yearly percentage of its price. For bonds, it is the return an investor gets if the bond is bought at today's price.
  • government bondA bond issued by a national government to borrow money, paying interest and returning the principal at maturity. It is often seen as one of the safest investments in its own currency.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Bonds & Fixed Income

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This page explains English vocabulary for learners. It is not financial advice.