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Maturity
Term category: Bonds
In 10 words or less:  The amount of time before the borrower needs to repay the principal on a bond.

Definition: When referring to bonds, it's the length of time that you have to wait until the principal is repaid.

StockJargon Advice: This is the date the borrower has to repay the lender the principal (amount borrowed before interest).

Bonds with maturity dates in the very near future (a year or so) typically pay less interest than bonds with maturity dates further in the future. The reason is because investors take on added risk with bonds that don't mature for a long time, so the yield compensates for this.

Related Articles

Bonds, Notes, and Bills
There are three different names for treasury securities based on their maturities.

Municipal Bonds
These bonds are bonds issued by local governments for the purpose of financing public projects.

Savings Bonds
Savings bonds, while not exciting, are still commonly held by investors. This article explains a little about them.

Related Books

The Bond Book by Annette Thau
How the Bond Market Works by Robert Zipf
Beating the Dow with Bonds By Michael B. O'Higgins
Getting the Most out of Your Savings Bonds by Brian J. Kurtz

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