The maturity date is the specific day on which a financial instrument, such as a bond or loan, is due to be repaid in full. It marks the end of the instrument's term, after which the principal amount must be returned to the investor or lender, along with any remaining interest obligations.

Maturity Date

maturity date

A financial instrument is a contract that represents a monetary asset or liability and can be traded or settled in the financial markets. They are essential for facilitating the flow of capital and risk across the economy, enabling investment, hedging, and speculation activities.

financial instrument

A bond is a fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations, and they pay periodic interest payments to investors and return the principal at maturity.

bond

A loan is a financial agreement in which a lender provides money to a borrower with the expectation of repayment, typically with interest, over a specified period. Loans are crucial for facilitating large purchases, investments, and economic growth by enabling individuals and businesses to access funds they may not immediately have.

loan

Due Date

The principal amount is the initial sum of money borrowed or invested, excluding any interest or growth that may accrue over time. Understanding the principal is crucial for calculating interest, determining loan repayment schedules, and evaluating investment growth.

principal amount

investor

A lender is an individual, public or private group, or financial institution that makes funds available to a borrower with the expectation of repayment, typically with interest. Lenders play a crucial role in the financial system by providing capital that fuels economic growth and enables individuals and businesses to invest in opportunities and manage cash flow.

CUSTOMIZE YOUR LEARNING

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