Social Studies, 23.12.2020 03:50 deanlmartin

If a borrower defaults on a bond, it means that the borrower -did not pay back the loan on the maturity date.
-has paid back the loan on the maturity date.
-has one year to pay before facing possible jail time.
-has paid back the loan prior to the maturity date.
-only has to pay a portion of the loan back.

Answers

Default is the failure to repay a debt including interest or principal on a loan or security. A default can occur when a borrower is unable to make timely payments, misses payments, or avoids or stops making payments. ... Default risks are often calculated well in advance by creditors.

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If a borrower defaults on a bond, it means that the borrower -did not pay back the loan on the matu...