How can an investor make money by buying a bond?

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1029560

2026-03-27 15:20

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An investor can make money by buying a bond primarily through interest payments, known as coupon payments, received periodically until the bond matures. Additionally, if the investor sells the bond before maturity at a higher price than the purchase price, they can realize a capital gain. Furthermore, if interest rates fall after the bond is purchased, the bond's market value may increase, allowing the investor to sell it at a profit.

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