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Maturity Date vs Coupon Date: What's the Difference?

When it comes to bonds, there are two key dates to be aware of: the maturity date and the coupon date. Though both dates are important, they serve different purposes. Here's a look at the key differences between maturity date and coupon date.

What is Maturity Date?

The maturity date is the date on which the bond issuer must repay the bondholder the full amount of the bond. This is the date on which the bond matures and comes due. For most bonds, the maturity date is 10 years from the date of issue. However, some bonds have shorter maturity dates, while others have longer maturity dates.

What is Coupon Date?

The coupon date is the date on which the bond issuer must make a interest payment to the bondholder. For most bonds, the coupon date is every 6 months from the date of issue. However, some bonds have different coupon dates, such as once a year or once every 3 years.

Key Differences

Now that you know the basics of maturity date and coupon date, let's take a look at the key differences between the two:

  • Maturity date is the date on which the bond issuer must repay the bondholder the full amount of the bond. The maturity date is also the date on which the bond matures and comes due.
  • Coupon date is the date on which the bond issuer must make a interest payment to the bondholder. For most bonds, the coupon date is every 6 months from the date of issue.

Final Thoughts

As you can see, there is a big difference between maturity date and coupon date. It's important to be aware of both dates when investing in bonds. By understanding the key differences between maturity date and coupon date, you can make more informed investment decisions.

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