Educational purposes only. This content does not constitute investment advice. Read our disclaimer
StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
The date a bond ends, when the issuer repays the face value.
Why It Matters
Maturity is when the loan is due — anywhere from a few months to 30 years. Longer maturities usually carry more risk, because more can change while your money is tied up, so they often pay more interest. Maturity also affects how much a bond's price moves when rates change.
Key Points
- Short-term bonds mature soon; long-term bonds can run 20–30 years
- Longer maturity generally means bigger price swings when rates move
- Holding to maturity returns the face value (barring default)
Learn More
What Are Bonds?
Get a complete explanation with examples, key takeaways, and a quiz to test your knowledge.
Related Terms
Common Questions
The date a bond ends, when the issuer repays the face value. Maturity is when the loan is due — anywhere from a few months to 30 years. Longer maturities usually carry more risk, because more can change while your money is tied up, so they often pay more interest.
Maturity is when the loan is due — anywhere from a few months to 30 years. Longer maturities usually carry more risk, because more can change while your money is tied up, so they often pay more interest. Maturity also affects how much a bond's price moves when rates change.
Short-term bonds mature soon; long-term bonds can run 20–30 years
Longer maturity generally means bigger price swings when rates move
Holding to maturity returns the face value (barring default)