How is the maturity (term) of a security determined?
All securities with an original maturity of one year or less are considered short-term. For example, if a security is issued on January 31, 2007 and matures on January 31, 2008, it is considered short-term even though the actual number of days the security is outstanding exceeds 365, i.e., 366. Securities with an original maturity of greater than one year or no stated maturity (e.g., perpetual bonds) are considered long-term.
