The period of time for which a bond remains outstanding is called the ________.

Question

BlackTom AI · Accepted Answer

The prompt asks for the term used to describe the period of time a bond remains outstanding. In bond terminology, the key concept for this duration is known as the maturity of the bond.

Maturity refers to the date on which the issuer promises to repay the bond's face value to the holder, marking the end of the bond's life and the end of its outstanding period.

Since no alternative answer choices were provided in the question, we can focus on the standard definition: the time from issuance until repayment, including any regular coupon periods that occur along the way, culminates at maturity.

Understanding this helps distinguish maturity from related notions such as 'tenor' or 'term to maturity' in some contexts, where people may use synonyms or slightly varying phrasing, but the core idea remains the same—the bond's outstanding period ends at its maturity date.

If future options appear, you can evaluate them against this definition: does the option designate the point when principal is repaid and the bond ceases to exist as an outstanding obligation? If yes, that option aligns with the standard concept of maturity.

MSB-250-300-002 Topic 6 Quiz

The period of time for which a bond remains outstanding is called the ________.

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