Time to Maturity Sample Clauses
The 'Time to Maturity' clause defines the specific period after which a financial instrument, such as a loan or bond, becomes due for repayment. This clause typically specifies the exact date or duration from issuance when the principal amount must be repaid to the lender or investor. For example, a bond may have a maturity of five years, meaning the issuer must repay the principal at the end of that period. The core function of this clause is to provide certainty and structure to repayment obligations, ensuring all parties are aware of when financial commitments must be fulfilled.
Time to Maturity. As the time remaining to maturity of your MITTS decreases, we anticipate that your MITTS may have a market value that may be different from that which would be expected based on the levels of market interest rates and the Market Measure. This difference will reflect a time premium or discount due to expectations concerning the Market Measure during the period before the applicable maturity date. In general, as the time remaining to maturity decreases, the value of MITTS will approach the amount that would be payable at maturity based on the then-current value of the Market Measure. In general, assuming all relevant factors are held constant, we anticipate that the effect on the market value of any series of MITTS based on a given change in most of the factors listed above will be less if it occurs later in the term of MITTS than if it occurs earlier in their term. However, we expect that the effect on the market value of MITTS of a given change in the value of the Market Measure will be greater if it occurs later in the term of MITTS than if it occurs earlier in the term of MITTS. Payments on MITTS are subject to our credit risk, and changes in our credit ratings are expected to affect the value of MITTS. MITTS are our senior unsecured debt securities. As a result, your receipt of the Redemption Amount at maturity is dependent upon our ability to repay our obligations on the maturity date. This will be the case even if the value of the Market Measure increases (or in the case of Bear MITTS, decreases) after the pricing date. No assurance can be given as to what our financial condition will be on the maturity date. In addition, our credit ratings are an assessment by ratings agencies of our ability to pay our obligations. Consequently, our perceived creditworthiness and actual or anticipated changes in our credit ratings prior to the maturity date may affect the market value of MITTS. However, because your return on MITTS depends upon factors in addition to our ability to pay Table of Contents our obligations, such as the value of the applicable Market Measure, an improvement in our credit ratings will not reduce the other investment risks related to MITTS. Purchases and sales by us and our affiliates may affect your return. We and our affiliates may from time to time buy or sell the Market Measures, components of Market Measures, or futures or options contracts on Market Measures or the components of the Market Measures for our own accounts for business re...
Time to Maturity. As a general rule, when there is a long time to maturity (the date on which the borrower must pay back the principal), the price of the debt security is likely to be more volatile because the longer the time, the greater the risk. In general, the market price of a long-term debt security will change more with a given change in market interest rates than the market price of a short-term debt security.