Current Maturity

AAA

DEFINITION of 'Current Maturity'

The interval between the present date and the maturity date of a bond. The current maturity tells how long the bond has left until it matures, and it is an important metric for determining a bond's valuation. The longer the time until maturity, the more interest payments that can be expected. In a normal company, there could be several bonds with staggered current maturities resulting in bonds expiring at different times.

INVESTOPEDIA EXPLAINS 'Current Maturity'

There are different types of maturities that investors use when referring to bonds. Current maturity is how much time is left, but "original maturity" is the time between the issue date and the maturity date. For example, in 2013, a bond that was issued in 2010 with a maturity date in 2030 would have a current maturity of 17 years (2030-2013), and the original maturity would be 20 years (2030-2010).

RELATED TERMS
  1. Coupon

    The interest rate stated on a bond when it's issued. The coupon ...
  2. Valuation

    The process of determining the current worth of an asset or company. ...
  3. Maturity Date

    The date on which the principal amount of a note, draft, acceptance ...
  4. Bond

    A debt investment in which an investor loans money to an entity ...
  5. Time Value of Money - TVM

    The idea that money available at the present time is worth more ...
  6. Surrender Period

    The amount of time an investor must wait until he or she can ...
Related Articles
  1. Junk Bonds: Everything You Need To Know
    Bonds & Fixed Income

    Junk Bonds: Everything You Need To Know

  2. The Advantages Of Bonds
    Investing

    The Advantages Of Bonds

  3. How Bond Market Pricing Works
    Bonds & Fixed Income

    How Bond Market Pricing Works

  4. Top 6 Uses For Bonds
    Options & Futures

    Top 6 Uses For Bonds

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center