When should you sell a bond?

I'm learning about bonds. Why would someone sell their bond if they are holding a zero coupon bond and it generates a 6% return on maturity? I'm currently holding those. I was reading that people sell their bonds when interest rates go down because they can get more than what they paid. When is the most opportune time to sell a bond?

Bonds / Fixed Income
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January 2018

The price of a bond is inversely related to the market interest rates. If rates fall and the value of the bond has gone up a lot and you think you can get a better yield to maturity for a comparable bond, then you would sell your bond and buy the other bond.

You would also sell your bond if the creditworthiness of the issuer is in question and you think the price of the bonds you hold will fall.

A zero-coupon bond does not pay periodic interest but is sold at a discount to face value (which you get at maturity). Zero coupon bonds are extremely sensitive to interest rates (High duration) and if the price has appreciated a lot you would replace it with a comparable bond with higher yield.

(This is the most basic explanation- there are several other complex strategies that may need bonds to be sold for a variety of reasons.)

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