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Maturity definition economics

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Aka dont go on a date with an American lol. Never miss a great news story! Get instant notifications from Economic Times Allow Not now. Maturity is a term defined with respect to bonds which have fixed maturities after which they Maturity definition economics to exist on payment of the principal and the stipulated interest. Risk-aware consensual kink A maturity profile Maturity definition economics the asset's profile based on the time remaining to the scheduled or specified maturity. A fund's profile consisting of the allocation of the value of assets in terms of percentage and their time left to maturity respectively is called a maturity profile. Alternatively it is also called a maturity distribution.

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Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot and forward transactions, interest rate and commodity swaps, options, loans and fixed income instruments such as bonds.

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Never miss a great news story! Get instant notifications from Economic Times Allow Not now. It is also known as redemption yield. As the name suggests, if an investment is held till its maturity date, the rate of return that it will generate will be Yield to Maturity. Calculation of YTM is a complex process which takes into account the following key factors:

Maturity definition economics


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