ShmoopTube

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finance a la shmoop what is term to maturity alright people well it's kind

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of a lifecycle of a bond like a bond is issued or sold it has an assay a 15 year [Bond timeline appears]

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duration somebody's written that money for 15 years its term to maturity when

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it first was issued was 15 years but if you bought that bond nine years into it

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some you know maturation process when all the hairs growing in funny places [Hairs grow out of bond]

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then at that point it would have six years current maturity well what goes on

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between these years interest payments and then eventually at the very end the

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issuer pays back the principal to the investor who bought the bond and [Money transfers from issuer to investor]

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everyone goes away happy-ish well bonds carry gradations in short medium and

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long term terms to maturity like short term generally is considered one to five [Different types of bond appear]

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years mid term medium term and something like that is like five to a dozen years

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and long term is like up to you know thirty or even a hundred years after

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that dozen or so no hard lines here they're all dotted and yeah Disney [Man discussing bonds at DisneyLand]

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actually sold a hundred year bonds at one point and they are of course the

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happiest bonds on earth [Disney bonds appear]

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