Pronounced back-uh-laurie-ette. Certain states in the U.S. sell baccalaureate bonds to help people save up for college, *tax-free* (gasp!). Some states even will even give you a discount on tuition if you use their baccalaureate bonds to attend a college in their state. Other states use the bond to fund their public universities, and sometimes the cash paid at the bond's maturity can be used for whatever nefarious, non-college plans you may have.
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Finance: What is the Maturity of a Bond?95 Views
finance a la shmoop what is the maturity of a bond ?oh come on.
doorbell bash, and prank phone calls whoopee cushions for the teacher? like how mature [person rings door bell]
is that ? right well a bond matures when it comes due. that is a company borrows a
hundred million bucks in 2019 for ten years paying five percent interest or
five million dollars a year to rent that money along the way, and then 2029 comes
around and well the bond matures. and lenders have that hundred million [bond is stamped]
dollars to the company get how much well if the company pays off its bond like it
promised then that last year 2029 the lenders get a hundred five million
dollars in that final year -that is they get the five million bucks in interest
or rent on the money that year and then they get their original principal back.
just like the person who borrowed it promised what happened that is the bond
will have matured. so goodbye whoopee cushions, and late night parties in hello
NPR in a responsible bedtime. [girl snores ]
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Maturity is, quite simply, the date when a debt becomes due. As for our maturity, well... we're still giggling about the word "due."