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When you buy a bond, the issuer will owe you the full amount of the bond regardless of when you choose to cash it in. Please select the best answer from the choices provided T F

2 Answers

5 votes

Final answer:

The issuer owes the face value of the bond at maturity, not before. Selling the bond before its maturity date may result in receiving more or less than its face value, hence the statement is false.

Step-by-step explanation:

When you buy a bond, you are lending money to the issuer, which could be a corporation or government. The issuer owes you the face value of the bond at its maturity date, not before.

Until that date, the bond may be traded at market value, which fluctuates based on interest rates and creditworthiness of the issuer.

Therefore, the statement that the issuer owes you the full amount of the bond regardless of when you choose to cash it in is false. If you sell the bond before maturity, you may receive more or less than its face value depending on the current market conditions.

answered
User GorillaApe
by
8.4k points
5 votes
true

when you buy a bond, the issuer owes you money
answered
User Dae
by
8.7k points
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