What is the typical maturity period for a term bond?

A term bond is a type of bond that has a specified maturity date at which the principal amount of the bond is due to be repaid to the bondholder. Typically, these bonds have maturity periods that can extend to longer durations compared to other types of bonds, reflecting their ability to provide issuers with long-term financing for projects or expenses.

The maturity period of 25 to 30 years is common for term bonds, particularly government and municipal bonds, which are often used for infrastructure or long-term capital projects. This longer maturity allows for the spreading of repayment over an extended period, which can be particularly beneficial for borrowers who need time to generate revenue from the funded projects.

The other options feature maturities that are generally associated with other types of debt instruments, such as notes or short-term bonds, which are typically repaid in shorter time frames. In contrast, the 25 to 30-year maturity of term bonds is what distinguishes them within the broader landscape of fixed-income securities.