Bond Maturity

Bond maturity means the date when a bond’s principal must be repaid to the investor. In simple terms, maturity is when the bond reaches the end of its life and the borrower pays back the original amount. Bond maturity is important because it affects interest rate risk, yield, and how investors use bonds in a portfolio. Longer maturities usually carry more sensitivity to interest rate changes. For example, a 10-year bond issued today has a maturity date 10 years from now. Bond maturity is not the same as coupon rate. Maturity tells when principal is repaid, while coupon rate tells how much interest the bond pays.