When you “revoke” a bond, it typically means that you are choosing to sell or cash in the bond before it matures. In this context, the term “revoke” is not commonly used, but rather “redeem” or “sell.”
When you redeem or sell a bond before its maturity date, you may be able to get your money back, but the amount you receive will depend on several factors:
- Bond Type – Different bonds have varying features, and some may have penalties or restrictions on early redemption. For example, some bonds may have a redemption fee if you sell them before a certain period, known as the bond’s call period. Government bonds and corporate bonds may have different rules.
- Market Conditions – The value of a bond in the secondary market fluctuates with changes in interest rates. If interest rates have risen since you bought the bond, its market price may be lower than its face value, resulting in a loss if you sell it early.
- Time to Maturity – The longer the time remaining until the bond matures, the more its price may be affected by market fluctuations.
- Interest Rate on the Bond – Bonds with higher interest rates are more attractive to investors, so their prices may be less affected by market changes.
- Brokerage Fees & Commissions – If you sell the bond through a broker or financial institution, there may be fees or commissions that reduce the amount you receive.
- Tax Implications – Selling a bond before maturity could have tax consequences, such as capital gains or losses, depending on your country’s tax laws.
Make sure to check the terms and conditions of the specific bond you hold and understand any potential costs or penalties associated with early redemption.
