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Maturity - Definition
Below, you'll find a definition of this investing term...

Definition:  When referring to bonds, it's the length of time that you have to wait until you get your money back.

TeenAnalyst Advice: This is the date the borrower has to repay the lender the principal (amount borrowed before interest).

Bonds with maturity dates in the very near future (a year or so) typically pay less interest than bonds with maturity dates further in the future.  The reason is because investors take on added risk with bonds that don't mature for a long time, so the yield compensates for this.

 

Related Sections on Our Website

Investing - Learn more about investing basics and strategies.

Bonds - Learn about investing in bonds.

 

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