term to maturity

Term to Maturity

The remaining life of a financial instrument. In bonds, it is the time between now and when the bond matures (maturity date), when the issuer must redeem the bond by paying the principal (or face value).

Notes:

A bond's term to maturity is mainly used in reference to a bond's yield to maturity, which is a widely used figure to compare bonds of varying maturities. Typically, the longer the term, the greater the yield and vice versa.

See also: Bond, Face Value, Maturity, Maturity Date, Par Value, Yield to Maturity

---

Term to maturity

The time remaining on a bond's life, or the date on which the debt will cease to exist and the borrower will have completely paid off the amount borrowed. See: Maturity.

---

term to maturity

The number of years within which the issuer of debt promises to meet the requirements of an indenture agreement. Bonds with longer terms to maturity are subject to greater price fluctuations than short-term securities are. See also yield curve.