HTTP vs HTTPS The significance of S: Http or the hypertext transfer protocol is something we use when we access the internet. Though we seldom notice it if at all, it plays a very essential role.
This is because the interest rate risk (risk of missing out on higher interest rates) decreases the closer bonds get to their maturity dates. With that, let's use the Bond Value Calculator to calculate the price of a bond given its face value, coupon rate, market rate, and years-to-maturity. Next enter the current market rate and the number of years to maturity, then click the Calculate Bond Valuation button.
http%3a%2f%2fwww.morningstar.com%2fInvGlossary%2fGlossary.aspx%3fterm%3daverage_maturity. Average Maturity. This figure is computed by weighting the maturity of each security in the portfolio by the market value of the security, then averaging these weighted figures. We list Average Effective Maturity for taxable-bond and hybrid funds. We list Average Nominal Maturity for municipal-bond funds.