due date of a debt at which time the principal must be paid.
In general: date at which legal rights in something ripen. In the context of commercial paper (negotiable instruments), it is the time when the paper becomes due and demandable, that is, the date when an action can enforce payment.
Personnel: character and emotional development of an employee.
- reaching the date at which a debt instrument is due and payable. A bond due to mature on January 1, 2010, will return the bondholder’s principal and final interest payment when it reaches maturity on that date. Bond yields are frequently calculated on a Yield To Maturity basis.
- when referring to a company or economy, maturity means that it is well-established, and has little room for dynamic growth. For example, economists will say that an aging industrial economy has reached maturity. Or stock analysts will refer to a company’s market as mature, meaning that demand for the company’s products is stagnant.
the due date of a loan.
Example: A mortgage loan may have a maturity of 30 years. Periodic payments are established so that the loan principal will amortized by the maturity date.
Example: A bond may have a maturity of 20 years. Generally, interest only will be paid, with the full principal repaid at maturity.
the end of the period covered by a contract.
Example: A lease or insurance policy typically has a maturity date at which the contract automatically expires.