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What is Bond? Will it become zero value before maturity?
I have heard of big company issuing bonds to collect money and pays about 3% yearly before maturity of Bonds say 5 years. Being low risk, however, will bonds become zero values in times to come?
3 Answers
- jeff410Lv 71 decade agoFavourite answer
The company could default on the bond before maturity. But the riskier the bond the more likely the company could default. The safer it is the less likely usually.
- mscLv 61 decade ago
No, bonds always mature at their full value. But, it's possible that the issuing company will go broke before maturity. That's why you should hold a selection of high quality bonds from many companies, not just one.
