term to maturity

USAGE SUMMARY

The phrase "term to maturity" is correct and usable in written English.
It is typically used in finance to refer to the time remaining until a financial instrument, such as a bond, reaches its maturity date. Example: "Investors often consider the term to maturity when evaluating the risk and return of a bond investment."

✓ Grammatically correct

Finance

Economics

Investment

Human-verified examples from authoritative sources

Exact Expressions

7 human-written examples

At least the average term to maturity for gilts is 14 years; it is about four on American central-government debt.

The Economist

Using an extension of classical immunization theory, this paper demonstrates that systemic risk of long amortization mortgage contracts is reduced when term to maturity of the contract at origination is significantly less than the amortization period.

International Review of Financial Analysis

A table showing the annual principal and interest payments which would be required to amortize in equal annual payments the level (as of the time the report is submitted) of the net public debt over the longest remaining term to maturity of any obligation which is a part of such debt.

Cornell University

The term to maturity is three months.

Swiss Journal of Economics and Statistics

Empirical rates are taken from default-free zero coupon bonds with term to maturity of ten years, as estimated by Deutsche Bundesbank for the debt securities market (Listed Federal securities, Svensson method).

Business Research

The yield curve forms the basis for the valuation of all fixed income instruments, because the price of a fixed income security can be calculated as the net present value of the stream of cash flows, and each cash flow has to be discounted using the zero coupon interest rate for the associated term to maturity.

SERIEs

Human-verified similar examples from authoritative sources

Similar Expressions

53 human-written examples

Any humans that came to term and to maturity as products of these procedures would represent uncontrolled laboratory experiments.

Huffington Post

In some respects, Cloud Computing represents the maturing of these technologies and is a marketing term to represent that maturity and the services they provide [6].

Journal of Internet Services and Applications

As long as shorter term bonds yield less than longer term bonds (also known as a normal or steep yield curve), this strategy can boost returns over buying a shorter term bond and holding to maturity.

Forbes

Of course, short-term bonds can be held to maturity so that price fluctuations won't matter, but committing your funds to long-term bonds seems a surefire way to lose money if you have to sell sometime along the way before they mature.

Forbes

Townsend, a passionate socialist who was left blind due to the complications of her diabetes, achieved worldwide success for her book series about the teenager Adrian Mole, who battles haphazardly through adolescence under Margaret Thatcher's government and, in later books, struggles to come to terms with maturity when Tony Blair is the Prime Minister.

Independent

Expert writing Tips

Best practice

When discussing bonds or other fixed-income securities, specify the "term to maturity" to provide investors with a clear understanding of the investment's timeline. Always pair it with the coupon rate and credit rating for a full assessment.

Common error

Don't confuse "term to maturity", which is the time until the principal is repaid, with the amortization period, which refers to the schedule of payments over the loan's life. They are related but distinct concepts.

Linguistic Context

The phrase "term to maturity" functions as a noun phrase within financial contexts. It describes the duration until a financial instrument reaches its maturity date. As Ludwig AI confirms, it is used to discuss the time remaining on investments like bonds.

Expression frequency: Uncommon

Frequent in

Science

43%

News & Media

36%

Academia

14%

Less common in

Wiki

7%

Formal & Business

0%

Social Media

0%

Ludwig's WRAP-UP

In summary, "term to maturity" is a noun phrase indicating the duration until a financial instrument matures, crucial for evaluating investment risks and returns. Ludwig AI validates its correct and usable nature, particularly in financial discourse. Predominantly found in scientific, news, and academic contexts, authoritative sources such as Forbes and The New York Times frequently employ this term. For clarity, avoid confusing it with related concepts like the amortization period. Using alternatives like "maturity period" or "time to maturity" can provide variety while maintaining precision. Understanding and correctly using "term to maturity" is essential for sound financial communication.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

maturity period

Focuses on the duration itself rather than the point in time.

time to maturity

Emphasizes the remaining time until maturity.

maturity date

Specifies the exact date when the instrument matures.

remaining term

Focuses on the duration left until maturity.

redemption date

Highlights the date when the principal is repaid.

years to maturity

Quantifies the term in years.

debt maturity

Specifically refers to the maturity of a debt instrument.

expiration date

Commonly used for options and other derivative contracts.

maturity timeframe

Indicates the period within which the maturity occurs.

investment horizon

Describes the expected duration of an investment.

FAQs

What does "term to maturity" mean in finance?

In finance, "term to maturity" refers to the period remaining until a financial instrument, such as a bond or loan, becomes due and the principal amount is repaid.

How does the "term to maturity" affect bond investments?

The "term to maturity" significantly impacts a bond's sensitivity to interest rate changes. Longer terms generally mean higher sensitivity. It also influences the potential return; longer terms typically offer higher yields to compensate for increased risk.

What is the difference between "time to maturity" and "maturity date"?

"Time to maturity" refers to the remaining period until a financial instrument matures, while "maturity date" is the specific date on which the principal is due to be repaid. The former is a duration, the latter a point in time.

Are there alternatives to using "term to maturity" in financial writing?

Yes, you can use alternatives like "maturity period" or "time to maturity" depending on the context. They all convey the same basic concept.