Bond Price

Bond price means the market price investors pay to buy a bond. In simple terms, bond price shows what the bond is worth in the market right now. Bond price is important because it moves in the opposite direction of yield. When bond prices rise, yields usually fall. When bond prices fall, yields usually rise. For example, if investors rush to buy Treasury bonds during uncertainty, bond prices may rise and yields may fall. Bond price is not the same as face value. Face value is the amount repaid at maturity, while bond price can change every day in the market.