What is the definition of Maturity?
- Posted on November 20, 2019
- Financial Terms
- By admin admin
Maturity is part of a loan contract which specifies the end of the life of the asset, i.e. when the principal will be repaid. For example, US 10 year Treasury bonds will have the principal amount repaid in 10 years time. Usually the longer the maturity, the higher the yield as there is more of a risk of default due to the unpredictability of long-term events.
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