Maturity definition
/What is Maturity in Finance?
The typical investment has a predefined lifespan. Maturity refers to the date on which the investment terminates. For specifically, maturity is the date on which the principal associated with a debt becomes due for payment. Upon repayment, the instrument is cancelled. The concept is most commonly associated with a bond.
If the issuer of debt does not repay investors on the maturity date, the instrument will be in default, which will have significant negative repercussions for the credit rating of the issuer.