The date on which the issuer of a debt instrument must repay the principal in total. For example, a bond with a period of 10 years has a maturity date 10 years after its issue. The maturity date also indicates the period of time during which the lender or bondholder will receive interest payments.

What is maturity date example?

The maturity date is the date on which a debt must be paid in full. ... For example, the issuer of a bond may have the option to buy back the bond earlier than the official maturity date, thereby shortening the period during which it accrues interest.

What has no maturity date?

A perpetual bond, also known as a "consol bond" or "prep," is a fixed income security with no maturity date. This type of bond is often considered a type of equity, rather than debt.