@budgetnke: The coupon on a bond NEVER changes. But the price you pay for it absolutely does and here's why 👇 Every bond has two numbers: the coupon (fixed forever) and the yield to maturity (what the market currently demands). The price exists purely to reconcile the two. If yield goes above the coupon, price drops below 100. If yield goes below the coupon, price rises above 100. Same bond, same coupon, completely different price depending on when you buy it. Real example: a 12% coupon bond priced at 11% yield = 107.13. Priced at 13% yield = 93.53. That's a 13+ point swing on the SAME bond, purely from the discount rate used. Swipe to see the actual math 📈 #BondsExplained #FinanceTok #InvestingBasics #YieldToMaturity #PersonalFinance

Barbs | Personal Finance Coach

Open In TikTok:

Region: KE

Tuesday 15 September 2026 12:01:31 GMT