# Term (maturity, duration, contract period)

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- Post ID: 592669
- Modified: 2023-07-25T21:11:20+00:00
- Language: en

## Definition

In the case of a loan, the period from the start of the contract until - the agreed repayment date or - the actual repayment in full, usually expressed in months. - In the case of an option, the period between the current date and the date on which the option right can be exercised for the last time, the expiration date. - The period of validity of a bond. - Maximum maturity is the period from the start of the contractual interest payment to the final maturity. - Residual maturity is the period from now until maturity for issues falling due en bloc. - Maximum residual maturity is the period from now until the maturity of the last installment for redeemable issues. - Minimum residual maturity is the period from now until the maturity of the next installment for redeemable issues. - Mean residual maturity is the sum of the shortest and longest residual maturity divided by two - Computed residual maturity is the maturity after which a redemption bond must be redeemed at once if it is regarded as an issue falling due en bloc with a constant nominal interest rate, the same price and the same yield. - In insurance, the time for which a contract concluded with the insurance company runs. If a contract is concluded for a term of several years, the contract can usually only be terminated at the end of the third year of the contract. Before that, this is only possible if a loss has occurred or if the insurance company increases premiums but not benefits. - See discount paper, bond, annuity loan, automatic execution, balloon, bullet payment, duration. - Cf. the monthly statistical supplement "Capital Market Statistics" of the Deutsche Bundesbank on the scope of paper and, in the explanatory notes, the distinctions made here. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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