Investing term

What is Maturity?

The date a bond's face value is repaid and the loan ends. Can be months, years, or decades away.

Maturity is the date a bond's loan ends — when the issuer repays the face value and the final interest. It can be months or decades away, and it shapes the bond's risk: longer maturities generally mean more sensitivity to interest-rate changes and more uncertainty. Hold a bond to maturity and short-term price swings become irrelevant; you get face value back.

For example

A 10-year bond matures a decade after issue; on that date you receive your $1,000 face value back, ending the loan regardless of price wobbles in between.

Maturity is taught hands-on in Stage 4 — Stocks, Bonds, Cash & Alternatives.

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Related terms

AlternativesInvestments outside the core stocks/bonds/cash mix — REITs, commodities, gold, crypto.BondA loan from you to an issuer (government or company), repaid with interest on a known schedule.Capital gainThe profit from selling an investment for more than you paid.CommodityA raw physical good like gold, oil, wheat, or copper — priced by the ounce, barrel, or bushel.
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