08-10-2022, 12:00 PM
(08-10-2022, 11:11 AM)fredtoast Wrote: If a bond's return rate drops below the current market rate then the "current value" of the bond may drop, but you will always receive the full principal if you hold the bond to maturity.
You might be thinking of "bond funds" that rise and fall in "current value" based on the return of the underlying bonds.
What you're saying is only true of secured bonds. If the entity paying an unsecured bond goes bankrupt you can lose principle.
