What happens when a bond becomes due?

A

You pay it back to the issuer, minus interest.

B

The issuer will pay you back, plus interest.

C

You pay it back to the issuer, plus interest.

D

The issuer will pay you back, minus interest.

I believe the answer is: B. The issuer will pay you back, plus interest

When a company issue a bond, that company is basically sell a promissory note that acted as a liability. This bond would specifically state the nominal value, the interest rates, and the due date when the buyer of the bond would receive the payment plus interest form the issuer.