The repayment of the investor’s principal is known as the maturity of a bond. Bond periods typically range from one year to thirty years.
Term ranges are frequently arranged in the following groups:
Short-term: Maturities of up to 5 years
Medium-term: Maturities of 5-12 years
Long-term: Maturities greater than 12 years
Because the principal will be recovered sooner and short-term bonds often give lower returns, they are generally seen as being more reliable and safer. Longer-term bonds, on the other hand, often provide investors higher total returns to make up for bigger price swings and other market risks.