Long-term bonds are those that will mature in 12 years or more. Medium-terms bonds mature in between five to 12 years. Anything less than five years is considered a short-term bond. While stock markets can fluctuate a great deal, a bond's interest rate is spelled out before you purchase it. That, however, doesn't mean all bonds are completely secure.
Companies do go bankrupt, as do municipalities.
Orange County, CA, is a recent example. After all, it can always print more money. Those corporations or Munis with a lower credit rating often have to pay a higher interest rate in order to attract customers willing to take a risk. The maturity date is the date when the bond's face, or par, value is paid off. This, as we will see later, is not always the price you paid for the bond.