Bond Prices, Interest Rates & Yield

A visual, plain-English guide to why a $1,000 bond can change in value. Use full screen when presenting.

Illustrative example only. The $900 market price is hypothetical, not a calculated price for a particular bond. Actual prices reflect remaining maturity, coupon frequency, prevailing yields, credit quality and other factors. Holding to maturity does not eliminate default risk or purchasing-power risk. Coupon rate, current yield and yield to maturity are different measures.