Which of the following describes the term maturity date?
A) The date on which each interest payment is made
B) The date on which the bond is issued
C) The date on which the principal amount is repaid to the bondholder
D) The date on which the bond is cancelled

Question

Quizplus · Accepted Answer

The maturity date refers to the date on which the principal amount of the bond is repaid to the bondholder. This can be thought of as the date on which the bond "matures" and the issuer is required to pay back the initial investment. It is different from the date on which each interest payment is made (option A) or the date on which the bond is issued (option B). It is also different from the date on which the bond is cancelled (option D), which may occur if the issuer calls the bond or if it is redeemed early.

Which of the Following Describes the Term Maturity Date