Happen when a bond maturesUploader: Holden 10 days ago Subscribe 3005
A guide to help to understand the simple math behind fixed-coupon corporate bonds. This technique can add diversity to your portfolio and lower your taxes. If you fail to do so, you are essentially giving whoever issued the bond a free loan, since they are holding your money and no longer paying you any interest on it. Most bonds have a fixed interest rate Interest rate A fee you pay to borrow money. Nonpayment at maturity may constitute default, which would negatively affect the issuer's credit rating. But they are not without risk. While today it's possible to have bonds automatically make payments electronically, historically it was necessary to contact whoever issued the bond and request payment.