A bond's term to maturity is the length of time a bondholder receives interest payments and correlates with an investor's risk appetite. Usually the longer the bond's term to maturity, the less volatile its price will be on the secondary market and the higher its interest rate.  Bonds are grouped into three main categories, based on how soon they repay investors:  Short-term bonds: One to five years Intermediate-term bonds: five to 12 years Long-term bonds: 12 to 30 years The duration of the bond measures both how long it will take an investor to be repaid the bond's price and how price-sensitive the bond is in response to changing interest rates.