Why Do Bonds Fluctuate in Value

Regardless of what you paid, the price of most bonds at maturity is par or 100. However, while you own the bond, the bond is going to fluctuate in value based on the current market conditions at any given time. Since bonds have a fixed coupon rate and maturity value, the concept that a bond will fluctuate in value can be perplexing. In this chapter, you will understand one of the reasons why bonds fluctuate in value.

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