Time to maturity

Time to maturity
The time remaining until a financial contract expires. Also called time until expiration.
Similar financial terms
Turnaround time
Time available or needed to effect a turnaround.

Time to maturity
Definition: [crh] The time remaining until a financial contract expires. Also called time until expiration.

average time to maturity of bonds, instruments, and other fixed-term investments in a mutual fund portfolio. The shorter the average maturity, the more sensitive the portfolio is to market interest rate changes.

Browse All Topics ...

Current time to maturity on an outstanding debt instrument.
[ Previous Page ]
Personal Finance Glossary ...

the tenor (time to maturity at exercise of the option) of the swap.
The purchaser of the swaption pays an up front premium. If she exercises, there is no strike price to pay. The two parties simply put on the prescribe swap.

The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with longer average life.
Personal Finance Headlines
SEARCH: ...

The remaining time to maturity calculated as the time between the execution date of a trade and the maturity.
maturity date ...

Term certificate A certificate of deposit with a longer time to maturity. Term Fed funds Fed funds sold for a period of time longer than overnight. Term insurance Provides a death benefit only, no build up of cash value.

[ITDS] after sight A draft where the time to maturity begins at its presentation or acceptance. [FDIC] A notation on a draft that indicates that payment is due a fixed number of days after the draft has been presented to the drawee.

Short bonds Bonds with short (not much time to maturity) current maturities. Short book See: Unmatched book.

Also called time to maturity. Time to maturity The time remaining until a financial contract expires. Also called time until expiration.

One of the attractive features of the Black-Scholes model is that the parameters in the model (other than the volatility) - the time to maturity, the strike, the risk-free interest rate,and the current underlying price - are unequivocally observable.

Graph depicting how interest rates vary as a function of time to maturity.

The answer to this question depends on many factors, including the credit-worthiness of the issuer, the remaining time to maturity, and the overall market conditions.

A dealer's haircut is an estimate of potential losses, taking into account credit risk, market risk, time to maturity, and other factors. Haircuts vary according to class of security: ranging from 0% haircut for U.S.

versus the time to maturity (horizontal axis). This curve usually slopes
upward, indicating that investors usually expect to receive a premium for
securities that have a longer time to maturity. The benchmark yield curve is
for U.S.

The graph of yield to maturity versus time to maturity for bonds is known as the yield curve. While the term structure of interest rates focuses on pure discount bonds, yield curves are often presented for coupon bonds.

Difference in yield between various bonds of equivalent time to maturity. Since time to maturity is the same, the major distinguishing variable is quality. For example, a 5-year U.S.

A graph that plots the yields of similar quality bonds on the y-axis and the time to maturity on the x- axis. Generally, the longer the time to maturity, the higher the interest rate.

Current Maturity: Current time to maturity on an outstanding note, bond or other money market instrument; for example, a five-year note one year after issue has a current maturity of four years.

average maturity: An average time to maturity of securities held by a mutual fund.
away from the market: A trade order placed outside the current trading range.
Return to Top of Page ...

Average Maturity definition :
The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with longer average maturity.
TSCTrade.com ...

A mathematical description of the relationship between interest rates (or the cost of borrowing) and the time to maturity of a debt in a given currency, often used in relation to fixed securities.

Average maturity The time to maturity of securities held by a . Changes in rates have greater impact on funds with longer average life.

The rate at which option loses value as time to maturity decreases. Also referred to as the time decay of an option. See also Greeks
Underlying ...

It often refers to high grade instruments which are very liquid and have very little time to maturity. Among these are treasury bills, commercial paper, and bankers' acceptances.

A certificate of deposit with a longer time to maturity.
Term Fed funds
Fed funds sold for a period of time longer than overnight.
Term insurance ...

Bonds with short (not much time to maturity) current maturities.
Short book
See: unmatched book.

The haircut will change depending on the class of a security, its market risk, and the time to maturity.

The percentage rate of return paid on a bond, note, or other fixed income security if the investor buys and holds it to its maturity date. The calculation for YTM is based on the coupon rate, length of time to maturity, and market price.

This is calculated on the basis of the coupon rate, the length of time to maturity and the bond's market price. It is assumed that the coupon interest paid over the life of the bond will be reinvested at the same rate.

Yield-to-Maturity
Investment return which takes into account the interest rate, length of time to maturity, and price paid. It is assumed that the coupon reinvestment rate for the life of the bonds will be the same as the yield-to-maturity.

It plots the yields of bonds of the same class (corporates, governments, etc.) and quality with maturities that range from the shortest to the longest term. The yields are plotted on the y-axis, and time to maturity on the x-axis.

Used to determine the rate of return an investor will receive if a long-term, interest-bearing investment, such as a bond is held to its maturity date. It takes into account purchase price, redemption value, time to maturity, ...

The calculation of YTM takes into account the current market price, par value, coupon interest rate and time to maturity. It is also assumed that all coupons are reinvested at the same rate. Sometimes this is simply referred to as "yield" for short.

As bond prices decrease, their yields increase and vice versa. The degree of change in bond price per a 1 bps change in yield is determined by a number of other factors, such as the bond's coupon rate, time to maturity, and credit rating.

Since neither actually pays interest (they are merely redeemable on maturity at face value), they sell at a discount to face value. The size of the discount depends on current interest rates and the length of time to maturity.
T ...

The calculation for YTM is based on the coupon rate, length of time to maturity, and market price. It assumes that coupon interest paid over the life of the bond will be reinvested at the same rate.

See also: Expense, Banks, Values, Saving, Bills