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.
Video transcript
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.
Questions and answers
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.
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.
How do bonds pay investors?
Bonds pay investors periodic interest payments and return the principal amount at maturity.
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