182k views
4 votes
What happens when a bond becomes due?

User Misiakw
by
7.4k points

1 Answer

5 votes
Unlike stocks that allow investors to own a portion of the company, when you buy a bond, it’s like you are loaning money to the organization from which you purchased the bond. WHEN THE BOND BECOMES DUE, THE ISSUER WILL PAY YOU BACK, PLUS INTEREST.
User Barbie
by
8.0k points