What happens to the principal amount on the maturity date of a bond?

On the maturity date of a bond, the issuer is required to repay the full principal amount of the bond to the bondholder. This means that the bondholder will receive the initial investment back in full, as well as any interest payments that were due. The maturity date is the date on which the bond contract expires, and the issuer is obligated to repay the bondholder. The maturity date is specified in the bond contract and is an important consideration for investors when they purchase a bond. It is also important for the issuer, as they need to make sure they have sufficient funds to repay the bond on the maturity date.