Definition of Term Maturity

Term maturity is a type of bond maturity that has all principal due on one date

Applying "Term Maturity" to Securities Exams:

Bonds unlike stock have a maturity date at which time the investor will have their principal returned to them and will cease being a creditor of the issuer. If a bond issue of $100,000,000 has a term maturity the issuer will repay the entire $100,000,000 back on a single specified date.

Preparing for an Exam?

Receive 15% off all your Securities Exam Prep materials

Please wait....

Your Cart