Finance glossary
Maturity
Definition
The date when a bond principal is due to be repaid.
Maturity is the length of time until a bond face value is returned to the investor, ranging from days to decades. Longer maturities generally carry higher yields and greater price sensitivity to interest rate changes. At maturity, the issuer repays the principal in full.
In a sentence
She chose a short maturity so her money would be returned within two years.
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