Why are bonds traded?
My guess is to combine higher guaranteed returns (such as longer time frames) with liquidity, but I don’t really get it.
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about 1 year ago
For the same reason that anything else is traded. Some people want to buy. Some want to sell.
about 1 year ago
Bonds are traded because some people want to consume now and others want to consume later. Those who want to consume later will buy a bond and earn money off that bond. Others who want to consume now will sell their bonds and spend their money.
about 1 year ago
Iv’e never really looked at it that way Chris.
What about the bonds that pay out quarterly yields or coupons
about 1 year ago
i think because there is a fluctuation in interest rate that will effect the bond price, so investor want to get profit from that.