How Long to Allow Bonds to Yield to Maturity

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The yield to maturity will be stated on the bond, and many times, there will be a date at which the bond will be over. Learn about bonds that are issued for five or 10 years with help from a portfolio manager in this free video on personal finance and money management.

Part of the Video Series: Stocks & Bonds
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Video Transcript

Okay, so you're wondering how long do we wait for the bond, or hold onto it until it yield sto maturity? Well, the yield to maturity will be stated on the bond, and many times, if you get a statement from your brokerage house or whoever you're working with there will be a date at which that bond is is over; at which time, you will receive the coupon amount back, and the date can vary. Some bonds are issued for five years; some for ten years. Many government securities are issued for ten to thirty years. So, the the yield to maturity is a stated item that is included on the coupon. And and again, if you look at a statement and look at how the bond is listed it will it will tell you when, and it will give you a day, a day, and a month, and a year of when that bond is going to be up. And at that point in time you'll receive your coupon back. You'll receive the par value, so whether you bought it at a premium or a discount won't matter. You'll receive the coupon back, and the bond will, at that point, end. And at that point you'll have the money that you paid for the bond, or you'll have the coupon amount back, and you can, at that point, look for a new bond.


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