TL/DR: looked everywhere, no straight answer to the following:
If a bond costs £100 initially with £5 return for 10 years, it will fully return £150 after 10 years. (Wild example, I know)
Would someone at any point pay over £150 (or over how much it currently has left)?
If so, why?
In: Economics
It would be unusual, but conceivably.
Imagine a situation where interest rates were so low that you could get no meaningful return on any investments.
You could keep your money under your bed, but they you run the risk of it being stolen.
In the event that the bond-issuer was extremely reliable, it might still be worthwhile to lose a small amount of money on your investment in return for security,
Some might respond by saying “why not put the money in the bank instead”, but what if the bank doesn’t pay interest and instead charges an account fee? In this case it would be a similar situation, where it would still be potentially in the investors best interest to pay for security
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