Pricing
Prices of existing bonds may fluctuate depending on current interest and inflation rates because prices of bonds and interest/inflation rates typically move in opposite directions. When interest/inflation rates go up, existing bond prices naturally go down. Conversely, when interest/inflation rates drop, existing bond prices normally go up. Keep in mind that investors who buy a new bond and plan to keep it until maturity will typically not be affected by changes in the bond's price because they have no intention of selling the bond. When investors buy or sell bonds on the exchanges, they will pay a commission or fee, which may vary from broker to broker. If a bond trades frequently, investors may have a lower commission rate than a bond that it is hard to find a buyer or seller for, resulting in potentially higher transaction costs.
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Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.
