Question

What happens when a bond becomes due?ayou pay it back to the issuer, minus interest.bthe issuer will pay you back, plus interest.cyou pay it back to the issuer, plus interest.dthe issuer will pay you back, minus interest.?

Answer 1

I think the answer would be you pay it back to the issuer minus the interest since most bonds have periodical payment for the interests. However, this depends on the issuer but oftentimes the case would be as such. Hope this helps.

Answer 2

I believe the answer is: you pay it back to the issuer minus the interest since most bonds have periodical payment for the interests

The interest that arise from the bond is the amount of profit that you can keep as an investors of the bond. This would create a situation where both the issuer and buyer of the bond experience an equally beneficial relationship. The buyer would obtain interest earning and the issuer would obtain capital injection form the bond.