The length of time over which a bond promises to make payments to the holder is called which of the following?
A) The term structure of interest rates.
B) Maturity.
C) Yield duration.
D) Face value.
E) Yield to maturity.

Question

Quizplus · Accepted Answer

Maturity refers to the length of time until a bond's principal is repaid to the bondholder. It is the date on which the bond expires and the issuer is required to repay the investor the face value (or par value) of the bond. A bond's maturity can range from a few months to 30 years or more, depending on the bond's duration. The other options are related to bond yield and pricing, but do not specifically refer to the length of time until the bond's principal is repaid.

The Length of Time Over Which a Bond Promises to Make