Maturity Payment Date
In finance, the maturity payment date is the date on which a bond or other fixed-income security reaches its maturity date, and the issuer of the bond must repay the principal amount to the bondholders. It is the date on which the issuer must make the final payment to the bondholder, which includes the principal amount plus any interest that has accrued.
For example, suppose a company issues a bond with a principal amount of $1,000 and a maturity date of December 31, 2025, with a fixed interest rate of 5% per year. This means that the bondholder will receive interest payments of $50 per year ($1,000 x 5%) until the maturity date. On December 31, 2025, the bondholder will receive the principal amount of $1,000 plus the final interest payment of $50.
The maturity payment date is an important consideration for both the issuer and the bondholder. For the issuer, it represents the date on which the principal amount of the bond must be repaid, and the issuer must ensure that it has sufficient funds available to make the payment. For the bondholder, it represents the date on which the investment will mature, and the bondholder will receive the final payment of principal and interest.