Term Payment Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

happiest bonds on earth [Disney bonds appear]