Maturity Date refers to the end date of a financial instrument or agreement by which the principal amount and/or accrued interest, where applicable, are to be repaid to the lender or investor. For instance, in the case of a bond, the maturity date is when the issuer is obligated to pay the principal and the last installment of interest to the bondholder. Similarly, for a term deposit or a business loan, the maturity date is when the term ends, and the funds are returned to the depositor or fully settled by the borrower. By knowing the maturity date, individuals or businesses can better plan for their financial obligations or forthcoming liquidity.
An example of using 'maturity date' is: "The company's bond portfolio includes bonds with staggered maturity dates to ensure a steady return of capital." This aids in diversifying risk and aligning with cash flow needs.