define maturity finance
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Glossary of Bond Terms Maturity (finance) In finance, maturity or maturity date refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid. The term fixed maturity is applicable to any form of financial instrument under which the loan is due to be repaid on a fixed date.
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Are Fixed Maturity Plans (FMPs) just the latest investment fad?-Answers to the frequent asked question-What are Fixed Maturity Plans (FMPs) Why are fixed maturity funds (FMPs) tax efficient and superior to bank Fixed Deposits (FDs) Fixed Maturity Plans are great investment options and are highly tax efficient. For one year FMP, the tax works out to 10% without indexation and 20% with indexation. For example, if you invest Rs 1,00,000 for a one year FMP, and assume the Fixed maturity plan gives you a gain of 10%- approximate Rs 10000. The capital gains tax for the Fixed Maturity Plan works out to be Rs 1000 without indexation and 1250 with indexation.
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bonded A security issued by a corporation or public body and usually carrying a fixed rate of interest and a set date, called the bond's maturity, for redemption of the principal. Like a stock, a bond is a type of investment, but unlike a stock, a bond has a definite, but not necessarily fixed, yield.
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Definition of Maturity Date On or before the maturity date, the mortgage must either be renewed, paid in full or refinanced. Example of Maturity Date On July 1, 2005 Mr. McGillicuddy obtains a $200,000 mortgage with a 30 year amortization rate and a 5 year term.
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- Fidelity's Defined Maturity Funds (DMFs) seek to provide federally tax-exempt income within a specified time period. Each fund offers professional management and diversification, like Fidelity's other municipal bond funds, with declining price volatility as the fund approaches its target maturity.
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- In particular, there are six important features to look for when considering a bond. Maturity. The maturity date of a bond is the date when the principal, or par, amount of the bond will be paid to investors, and the company's bond obligation will end.
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Bond Basics: Bond Prices and Yield to Maturity Yield to maturity is considered a long-term bond yield, but is expressed as an annual rate. In other words, it is the internal rate of return of an investment in a bond if the investor holds the bond until maturity and if all payments are made as scheduled. Next Up.
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maturity Definition of maturity. 1 : the quality or state of being mature; especially : full development the maturity of grain maturity of judgment lacks the wisdom and maturity needed to run the company. 2 : termination of the period that an obligation (see obligation 2c) has to run.
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What Is Concrete Maturity? The Maturity Method. The maturity method, often simply referred to as “maturity,” is a way of evaluating new concrete’s in-place strength by relating time and temperature measurements to actual strength values.
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Weighted average remaining maturity Also found in: Acronyms. Weighted average remaining maturity. The average remaining term of the mortgages underlying a MBS. Weighted Average Maturity. The average amount of time remaining before maturity in the mortgages underlying a mortgage-backed security, weighted by the percentage of the MBS that each mortgage constitutes. For example, suppose a mortgage-backed security contains two mortgages, one worth $10,000 and one worth $20,000, for a total of $30,000. The $10,000 mortgage matures in five years, and the $20,000 mortgage in 10 years. The weighted average maturity is also known as the weighted average remaining maturity.
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The real reasons why the US Treasuryâs debt maturity has been rising Suppose you owe $100 and have to repay $10 each year. (There is no interest.) Initially, the weighted average maturity of your debt is 5.5 years. As you make each $10 payment, the average maturity steadily falls by half a year until it is fully repaid after ten years. Now imagine that you repaid your $100 in two $50 increments, one in the first year and the other after ten years.
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The real reasons why the US Treasuryâs debt maturity has been rising Conversely, the shrinkage of the deficit and the emergence of the short-lived surplus in the second half of the 1990s caused the weighted-average maturity of the debt to increase sharply despite the Treasury’s abandonment of the 30-year bond and commitment to issuing debt at shorter maturities.
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What happens to the convertible promissory note if the maturity date is reached and there hasnât been a financing? The company could either ( 1 ) pay back the loan ( which is unlikely since it is probably out of money ) , ( 2 ) ask the investors to extend the maturity date , ( 3 ) convert the loan into the last round of Preferred Stock ( if any ) at a pre-determined ( i.e. last round ) price ( or price negotiated at the maturity date ) , or ( 4 ) convert the ...
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Definitions &Translations Here are all the possible meanings and translations of the word maturity. Princeton's WordNet(0.00 / 0 votes)Rate this definition: adulthood, maturity(noun) the period of time in your life after your physical growth has stopped and you are fully developed. maturity, matureness(noun) state of being mature; full development. maturity, maturity date, due date(noun) the date on which an obligation must be repaid.
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- Maturity - Maturity is the date when the principal on the bond or note is scheduled to be repaid to the investor. The State generally sells bonds that have maturities between 1 and 30 years. In general, the further out the maturity date, the higher the investors yield.
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- 1 Maturity date is the date on which the bond will mature and the bond issuer will pay the bond holder the face value of the bond. 2  Issue price is the price at which the bond issuer originally sells the bonds.
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Glossary of Bond Terms Tax-exempt yields are usually stated in terms of yield to maturity, with yield expressed at an annual rate. If you purchase a bond with a 6.0% coupon at par, its yield to maturity is 6.0%. If you pay more than par, the yield to maturity will be lower than the coupon rate. If purchased below par, the bond will have a yield to maturity higher than the coupon rate. When the price of a tax-exempt bond increases above its par value, it is said to be selling at a premium. When the security sells below par value, it is said to be selling at a discount.
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Definitions &Translations Maturity(noun) the state or quality of being mature; ripeness; full development; as, the maturity of corn or of grass; maturity of judgment; the maturity of a plan. Maturity(noun) arrival of the time fixed for payment; a becoming due; termination of the period a note, etc., has to run. Origin: [L. maturitas: cf.
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Are Fixed Maturity Plans (FMPs) just the latest investment fad?-Answers to the frequent asked question-What are Fixed Maturity Plans (FMPs) Why are fixed maturity funds (FMPs) tax efficient and superior to bank Fixed Deposits (FDs) Fixed Maturity Plans are great investment options and are highly tax efficient. Here is a simple tax calculation that demonstrates the tax efficiency of FMPs vs FDs. For one year FMP, the tax works out to 10% without indexation and 20% with indexation.
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- Defined-maturity funds are hybrid funds designed to bridge one of the biggest gaps between traditional bond funds and individual funds. As the name implies, defined-maturity bonds cease their existence on a specified date. At maturity, investors receive a distribution equivalent to the fund’s net asset value.
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Economic Definition of maturity. Defined. Economic Definition of maturity. Defined. Term maturity Definition: That date at which the principal on a bond or similar financial asset needs to be repaid. Maturity dates can be anywhere from a few hours to 30 or more years.
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- maturity. n. → Reife f; to reach maturity (person) → erwachsen werden; (legally) → volljaehrig volljährig; (werden) → animal ausgewachsen; sein poems of his → Maturity gedichte → pl seiner Reiferen; jahre’he s somewhat lacking in → maturity ihm fehlt die Noetige. nötige reife
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Maturity Maturity. 1  For a bond, the date on which the principal is required to be repaid. 2  The time when the issuer of a bond or other debt security must repay the principal or when a borrower must repay a loan in full. 3  The date on which payment of a financial obligation is due. In the case of a bond, the maturity date is the one on which the issuer must retire the bond by paying the face value of the bond to its owners. Shares of stock do not have specific maturity dates.
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- Intermediate/Medium-Term Debt. A type of fixed income security with a maturity, or date of principal repayment that is set to occur in the next 3-10 years. Bonds and other fixed income products tend to be classified by maturity date, as it is the most important variable in the yield calculations.
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What Does It Mean When a Loan Matures? Be sure you understand the loan's terms before you sign. Maturity is generally considered a good thing. It improves wine and cheese, and a tomato fully matured on the vine is one of life's great pleasures. Maturity is also something to value in your partner, especially if you've had one or two of the other kind.
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maturity Definition of maturity. 1  1 : the quality or state of being mature; especially : full development the maturity of grain maturity of judgment lacks the wisdom and maturity needed to run the company. 2  2 : termination of the period that an obligation (see obligation 2c) has to run.