The return on a specific Fractional Bonds offer depends on the coupon rate of the underlying bond. The coupon rate is determined by:
- inherent risk factors of the underlying bond, including the bond issuer’s creditworthiness
- market factors, including the general economic environment, general interest rate levels, and alternative investment opportunities in the financial sector
If you hold your Fractional Bonds until maturity, fluctuations in the underlying bond's value will not affect your return. However, if you want to sell your Fractional Bonds on the Secondary Market, the price might be affected by supply and demand, as well as changes in the risk and market factors of the underlying bond. This means the going price on the Secondary Market might be different from the purchase price you paid.