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The day a bond or other obligation is due to be paid is called the maturity date. This is the date on which the issuer of the bond is obligated to repay the principal amount to the bondholder.

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1y ago

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Just like CDs bonds reach at which point the amount paid for the bond is returned to the bondholder?

Bonds reach maturity when the principal amount paid for the bond is returned to the bondholder. At maturity, the bond issuer repays the face value of the bond to the bondholder, along with any remaining interest payments.


What is a supercedeas bond?

A supercedeas bond is a type of surety bond that allows a judgment debtor to delay or stay execution of a judgment during an appeal. It guarantees that if the appeal is unsuccessful, the judgment creditor will be paid. This type of bond helps protect the judgment creditor's rights while preserving the judgment debtor's ability to appeal.


When the owner of a fhlm bond dies does he or she receive the amount they paid for the bond?

When the owner of a Freddie Mac bond dies, the bond is typically passed on to the beneficiary named in the owner's estate planning documents. The beneficiary would then be entitled to the payment terms outlined in the original bond agreement.


Consumers able and willinWhich of these is an element of a bond?

One common element of a bond is the coupon rate, which represents the annual interest rate paid by the issuer to the bondholder. This rate is typically fixed at the time of issuance. Other elements include the maturity date, which is when the bond reaches the end of its term, and the face value, which is the amount that the issuer agrees to repay the bondholder at maturity.


What is the connection between a bond principal and interest?

The bond principal is the initial amount borrowed by the issuer, while the interest is the payment made by the issuer to the bondholder for the use of the principal. The interest is usually a fixed percentage of the principal amount and is paid at regular intervals until the bond matures.

Related Questions

What is the day a bond or other obligation is due to be paid called?

Maturity Date


What is an on demand payment bond?

This is a type of credit enhancement that guarantees payment of an obligation and must be paid by the enhancer on the demand of the note or bond holder.


What types of things are paid for through general obligation munis?

The costs of building schools and sewers, for example, are paid for through general obligation bonds.


What is a callable?

Callable is the designation of a bond that can be paid off earlier than its maturity date.


What is the money paid for release from jail until the trial called?

Bail or a Bond to appear


What is lease obligation?

it is lease paid on capital invested


Can you still be paid after the statute of limitations or is it too late?

It is possible to get paid. There is no legal obligation, but it can be done.


Is a life insurers obligation terminated after lump sum is paid?

Yes


How frequently is interest paid on a bond?

Interest is usually paid semiannually.


What is the name of a loan that is issued in return for the promise of being paid back the full amount plus the periodic interest?

This is called a bond.


What are bond features?

Bond features refer to the characteristics and terms that define a bond's structure and behavior. Key features include the bond's face value (the amount paid back at maturity), coupon rate (the interest paid to bondholders), maturity date (when the bond expires), and credit quality (the issuer's ability to repay). Other important aspects include whether the bond is secured or unsecured, callable or convertible, and its tax status. These features influence the bond's yield and risk profile for investors.


Who determines the rate of interest paid on a bond?

Bonds have a predetermined rate of interest called the stated or contract rate, which is established by the board of directors.