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FAQs

Bonds - Buying and Selling Bonds
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You can buy and sell bonds on the open market just like you buy and sell stocks. In fact, the bond market is much larger than the stock market. Here are a few terms you should be familiar with though when buying and selling bonds: Market price is the price at which the bond trades on the secondary market. Selling at a premium is the term used to describe a bond with a market price that is higher than its face value. Selling at a discount is the term used to describe a bond with a market price that is lower than its face value.