What is Maturity?

A bond's maturity is the date the issuer repays the face value and the loan ends. Some bonds mature in a few months, others in 30 years or more. Longer maturities usually pay higher coupons and also swing more in price when interest rates move.

Why Maturity matters

Maturity is the simplest clue to how sensitive a bond is to changes in interest rates.

Related terms

Lessons that use this term

Continue