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Bonds Videos 389 videos

Finance: What is Collateralized Mortgage Obligation (CMO)?
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What is Collateralized Mortgage Obligation (CMO)? A CMO is a mortgage bond that consists of a large number of different individual mortgages bundle...

Finance: What are Kickbacks?
1 Views

What are kickbacks? Well, they're things we don't get for working at Shmoop, that's for sure. Hit play to find out more.

Finance: What are At the Money, In the Money, Deep in the Money, and Out of the Money?
5 Views

What are At the Money, In the Money, Deep in the Money, and Out of the Money? At the money happens when a stock is trading at an option’s strike...

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Finance: What is maturity? 1 Views


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Description:

Maturity is, quite simply, the date when a debt becomes due. As for our maturity, well... we're still giggling about the word "due."

Language:
English Language

Transcript

00:00

Finance allah shmoop What is maturity and oh yes the

00:07

irony asking someone It shmoop to read about maturity but

00:11

we'll do our best here So maturity what is it

00:14

Well it's just the date when a debt becomes do

00:19

You buy a thousand dollar bond with a maturity date

00:22

of may thirty one twenty twenty five Also what happens

00:26

on may thirty one twenty twenty five Well that's the

00:29

date you'll get your grand back and you'll have the

00:32

interest for that period as well So if you had

00:34

a six percent bond on that last payment may thirty

00:38

one twenty twenty five trivia question how much would you

00:41

get back Yes ah thousand dollar principle You'd get returned

00:45

but you'd also get what What yes the final payment

00:48

of thirty bucks right cause bonds pay interest twice a

00:50

year six percent sixty dollars a year You get that

00:53

thirty bucks back and that'd be the end of it

00:55

We love the semester system here it's from up We're

00:57

hoping we can age beyond the seventh grade level that

01:00

we seemed to live at here pretty soon for said

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