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In finance, maturity refers to the date on which a financial instrument or contract expires and the original principal and any remaining interest is due to be paid. The term is most commonly used in reference to bonds, which are issued with a set maturity date that marks the end of the bond’s term and the payment of its face value. The maturity date is also an important consideration for other financial instruments, such as options contracts and futures contracts, as it determines the period over which the contract is in effect and the time frame within which the underlying asset must be bought or sold.

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