How to Calculate How Many Years It Is Until a Bond Matures
Original post by Charlotte Johnson of Demand Media
A bond is a form of investment in which you act as sort of a lender to the government or a business. You invest a certain amount of money in a bond, and you receive that money plus interest back if you keep the bond for specific periods of time. Each bond has a maturity date. If you hold onto the bond until this date, you receive the maximum value for that bond. However, if you cash in a bond or sell it before the maturity date, you won't receive the maximum value.
Look for the issue date on the bond. For example, you might have a bond that was issued on January, 2010.
Look for the maturity terms on the bond. For instance, you might see the phrase, "interest ceases 30 years from issue date."
Add the years until maturity to the year in the issue date of the bond. In this example, you would add 30 years to the year 2010. This means that the bond would mature in January, 2040.
About the Author
Charlotte Johnson is a musician, teacher and freelance writer with a master's degree in education. Johnson has written numerous articles for various websites. She has covered a wide range of topics including health, education, the arts, animals and parenting.
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