After issue,the market price of a fixed-rate bond can differ substantially from its par value.

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The market price of a fixed-rate bond can be affected by various factors such as changes in interest rates, credit risk, inflation, and market demand. As a result, the market price can deviate significantly from the bond's par value, which is the face value of the bond that the issuer promises to pay back to the bondholder at maturity. For example, if interest rates rise after the bond is issued, its market price will decrease because new bonds issued in the market will offer higher yields than the fixed rate of the existing bond. Conversely, if interest rates decline or the issuer's creditworthiness improves, the bond's market price may increase above its par value.

After Issue,the Market Price of a Fixed-Rate Bond Can Differ