Can You Withdraw Cash Directly from a Bond?

Learn why you cannot withdraw cash from a bond and how selling bonds on the secondary market works.

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No, you cannot withdraw cash directly from a bond. Bonds are fixed-income investments that pay periodic interest and return the principal at maturity. To access cash, you must sell the bond on the secondary market, often with the help of a broker. Note that selling bonds before maturity could result in a gain or loss depending on interest rate changes and market conditions.

FAQs & Answers

  1. Can I get cash from a bond before it matures? No, you cannot withdraw cash directly from a bond before maturity. You must sell the bond on the secondary market to access cash.
  2. What happens if I sell a bond before maturity? Selling a bond before maturity can result in a gain or loss depending on interest rate changes and current market conditions.
  3. How do bonds pay investors? Bonds pay investors periodic interest payments and return the principal amount at maturity.

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