The common terms used in association with bonds
The following terms are associated with bonds and we need to understand what they mean in order to understand bonds.
Term-to-maturity
This is the number of years over which the issuer of the bond has promised to meet the conditions and obligations of the bond issue.
During this time, the bondholder is paid the promised coupon payments and it also indicates the time period remaining before the bondholder is paid back the principal.
The term-to-maturity also affects the bond yield and the bond price.
2007-09-23
Bonds(19) Term-to-maturity
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