Why is there a secondary market in Bonds ? Why don’t investors just take the interest and be done with it ?

Question

secondary Bond market clarification

Answer 1

Some students have a difficult time understanding bonds and the math of bonds. One breakthrough moment is when they realize why bonds trade at all, andwhy don’t people just take the payment like a savings bond.

There are many reasons but the two easiest to remember are

1 they need the money(principal) now They can’t way until maturity to get the principal back

2. They want to reallocate the funds because market conditions have changed in a way that makes their bond out of line with their investment goals