10/21/2026
A bond’s price and its payout are two different things.
What changes along the way is what someone else would pay for it today.
If new bonds are paying 5% and yours pays 4%, a buyer will only take yours at a discount.
That’s why bond prices fall when rates rise, and why the price on your statement isn’t the same as what you receive if you hold to maturity, as long as the issuer stays solvent.
For a closer look, including how individual bonds and bond ETFs behave differently, read our latest blog: https://www.ranchcap.com/post/how-bond-investing-works