Term To Maturity
What Does Term To Maturity Mean?
The remaining life of a financial instrument. In bonds, it is the time between when the bond is issued and when it matures (maturity date), at which time the issuer must redeem the bond by paying the principal (or face value).
Investopedia explains Term To Maturity
A bond's term to maturity is mainly used in reference to a bond's yield to maturity, which is a widely used figure that compares bonds of varying maturities. Typically, the longer the term, the greater the yield and vice versa.
