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Time to maturity

How much time is left until the principal comes back.

How to read the number

It sets the upper bound of the horizon: whoever holds to maturity receives par regardless of what the price did along the way.

When the metric lies

For amortising issues and issues with a put date the figure misleads: cash returns earlier, and comparing such a bond with a plain one by maturity date is not a comparison.

Also known as: tenor, remaining term

Related terms