Written, signed, unconditional, and unsecured promise by one party (the maker or promisor) to another (the payee or promisee) that commits the maker to pay a specified sum on demand, or on a fixed or a determinable date. Promissory notes (such as bank or currency notes) are negotiable instruments.
The Basics Of Bond Duration. Duration tells investors the length of time it will take a bond's cash flows to repay the investor the price he or she paid for the bond. A bond's duration is stated as a number of years and ...
An intermediate-term bond is one that matures not in the short-term or in the long-term. It matures in the medium term. Just what the intermediate term is, that's not as easy to define. Some say three to 10 years. Some say the intermediate term can last for 15 years. The length of time to maturity really does matter. Those who know bonds understand that the maturity date is the point at which the bond pays back the principal or face value of the bond.