bond maturity

**bond maturity**

Bond maturity refers to the specific date on which the principal amount of a bond is scheduled to be repaid to the bondholder. At maturity, the issuer of the bond is obligated to return the original investment, known as the face value or par value, along with any final interest payments. Understanding bond maturity is crucial for investors because it affects the bond’s duration, interest rate risk, and overall investment strategy. Short-term bonds mature within a few years, while long-term bonds may have maturities extending several decades.