Bond maturity is the date in which a bond needs to be repaid.
What is bond maturity?
These timeframes are divided into short-, medium-, and long-term periods: 5 years, 5–12 years, and more than 12 years, respectively. If the borrower doesn’t pay the bond back on time, they are in default on their debt. Early redemption, however, happens when the bond is paid earlier than the maturity date, resulting in less interest for the borrower.