What happens when a bond becomes due?

On the maturity date, or in other words, when the bond becomes due, the issuer must pay back:

  • the face value of the bond in full, and
  • the last interest payment (unless it’s a zero-coupon issue)

What else do you need to know about bonds?

Want to learn more before deciding what’s your optimal bond allocation? You might want to check out these other articles to deepen your knowledge.

  • What is a bond?  (our main article in the bond section)
  • What is a bond yield?
  • How do bonds work?
  • What happens when a bond comes due?
  • How to invest in bonds?
  • How to buy bonds?
  • Where to buy bonds?
  • How to buy treasury bonds?
  • What is a government bond?
  • What are convertible bonds?
  • What are junk bonds?
  • What is a secured bond?
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