The length of time from issuance until repayment is scheduled is called what?

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Multiple Choice

The length of time from issuance until repayment is scheduled is called what?

Explanation:
Maturity is the length of time from issue to the date when the principal is scheduled to be repaid. It tells you when the investor gets their money back at the end of the loan or bond. This timing matters because it also affects risk and price sensitivity: longer maturities expose you more to interest-rate changes. To distinguish the other terms: par value is the amount repaid at maturity (the face value), coupon is the regular interest payments made over the life of the asset, and yield is the overall return you earn considering price and all cash flows. If a bond has a 10-year maturity, the principal is scheduled to be repaid in 10 years.

Maturity is the length of time from issue to the date when the principal is scheduled to be repaid. It tells you when the investor gets their money back at the end of the loan or bond. This timing matters because it also affects risk and price sensitivity: longer maturities expose you more to interest-rate changes.

To distinguish the other terms: par value is the amount repaid at maturity (the face value), coupon is the regular interest payments made over the life of the asset, and yield is the overall return you earn considering price and all cash flows. If a bond has a 10-year maturity, the principal is scheduled to be repaid in 10 years.

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