What is the term for the date when a bond pays out the principal and interest payments cease?

The correct term for the date when a bond pays out the principal and interest payments cease is the maturity date. This is a fundamental concept in the bond market, where the maturity date signifies the final deadline by which the bond issuer must return the bond's face value to the bondholder. Until this date, the bondholder typically receives periodic interest payments, known as coupon payments. Once the bond reaches its maturity date, these payments cease, and the principal amount is redeemed.

Understanding the maturity date is crucial for investors, as it impacts decisions regarding cash flow, investment strategy, and the evaluation of the bond's risk profile. Investors need to consider this date in relation to their financial goals and the bond's duration when planning their investment portfolios.

In contrast, terms like redemption date refer to situations where the bond might be paid off earlier than the maturity date, and settlement date refers to the date when the transaction to purchase the bond is finalized. Meanwhile, deadline is a more general term without a specific application in bond terminology.