The concept of pull-to-maturity reflects the increasing variance of a bond's price as the maturity of the bond approaches.

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The concept of pull-to-maturity (or pull-to-par) actually refers to the phenomenon where the price of a bond tends to move towards its par value as the maturity date approaches, assuming no change in credit quality or interest rates. This is because at maturity, the bond will be redeemed at its par value.

The Concept of Pull-To-Maturity Reflects the Increasing Variance of a Bond's