How the heck does a bond's price change?

Discussion in 'Ask any question!' started by Konstantinos, Apr 3, 2020.

  1. Konstantinos

    Konstantinos New Member

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    Hey, guys! What's up?

    I know this is an extremely stupid question but if you give me 30 seconds I might be able to explain why I'm asking it (although not make it less stupid).

    Maybe I will be more accurate if I ask "how does a bond even have a PRICE?". Did I make things worse?

    Bare with me as I am not very familiar with bonds. If it basically is a loan that you give to the government or a company, how does it have a price tag on it? Someone owes you money and if the price declines, that means he will have to pay you less money back, right? lol How does that even work?

    I am sorry for my ignorance but I tried to answer it myself on Google and it probably is that stupid that Google didn't want to answer. :(
     

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