What is Maturity?
Definition of Maturity: It refers to a specific date in which the financial tool expires and the settlement of the specific obligation is finished. Generally, maturity is a date that a debt or bond instrument issuer has to compensate to the owner any accrued interest and principal. The expression may also be applied to the swaps of rate of interest. In this, it is the real date after which the rate is not accrued. Currencies and stocks do not have any kind of maturity dates, yet the future contracts and alternatives may have expiry date. Generally, the investors in combination with the lengthy matured dates take an excessive amount of danger as price rise. If it is not controlled, it can weaken the buying power of the quantity of principal amount. On the other hand, bonds may be practical investment at low interest rate and low price rise. The existing bull market in the bonds started since 20 years, with the bonds welcoming for a period because of the declining rate of interest and low inflation. Several analysts feel that the favorable period of the bond ownership has ended as the interest rate have hit the low level and must rise in the near future.