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The simple answer is yes.

Investors can count on a fixed-income security paying them a certain amount of cash as long as the security is held until maturity and the issuer doesn’t default. Most bonds pay twice a year. A $1,000 bond with a 10% coupon that has 10 years until it reaches maturity will pay the holder $50 twice a year for 10 years.

But most investors are more concerned with bond yield, which measures the income a bond generates by dividing the interest by the price. If the bond sells for $1,000, or par, the coupon payment is equal to the yield, which is 10% in this case. But bond prices fluctuate for many reasons. When they do, yield changes, too.

If market prices change and the bond’s value falls to $800, its yield climbs to 12.5%, or $100 divided by $800. The semiannual coupon payment of $50 does not change. If the bond’s price climbs to $1,250, the yield will decrease to 8%. That’s $100 divided by $1,250. And it still makes two, $50 payments a year.

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