What is the difference between maturity and duration?

Duration differs from maturity in that it considers a security’s interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest rate resets, and call options) when applicable.

What is bond duration vs maturity?

If you’re looking to invest in bonds, it can be helpful to understand bond duration vs. maturity. Maturity is the time remaining until the bond’s principal is repaid. A bond with a 10-year maturity will return the principal to the investor in 10 years.

What does maturity mean in a bond?

Maturity is the length of time until a bond's principal is repaid. It is the date on which the bond issuer must repay the bondholder the face value of the bond. Maturity is expressed in years and is essential in determining the bond's price. The maturity choice for a bond is an important consideration for both the issuer and the investor.