Explain why bond prices and market yields usually move in opposite directions.
The coupon is fixed; the market's required yield is not. Same cash flows, new discount rate Bond prices are built from future cash flows. When investors require a higher yield, they pay less today for those same promised cash flows. Why the statement moves If you sell before maturity, the market price matters. If you hold to maturity and the issuer pays, par is due at maturity. Those are different questions. The practical rule Match maturity and duration to when you need cash. The shorter the real time horizon, the less room there is to absorb price movement.
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