Market Price

The market price of a bond is the price at which it trades in the secondary market between buyers and sellers, and it fluctuates throughout the bond's life based on changes in interest rates, the issuer's credit quality, and broader market conditions. There is an inverse relationship between interest rates and bond prices—when rates rise, existing bond prices fall, and vice versa. In India, government securities and corporate bonds are traded on the NSE's debt market segment and through RBI's NDS-OM platform. A bond's market price is quoted as a percentage of its face value—a price of 98 means the bond is trading at ₹98 for every ₹100 of face value.