Interest yeild.

Once someone has invested in debt, then the interest they receive (the coupon rate) is indeed fixed. However the MV is the price at which investors can sell their investment to other investors. If general interest rates fall then the MV will increase and that will benefit someone owning the debt because it will be worth more if they choose to sell it.

Yes sir, That is one instance whereby general infl'on is decreasing.. What if general inflation increased And subsequently reduced market value thereby higher interest yeild.. So how is investor benefited during inflation Since interest are fixed exacerbated by reduced market value.

Nobody says that the current investor benefits - they continue to receive the same interest in $'s. However if the MV falls, then someone buying the debt will be getting a higher rate of interest (because the interest yield that they require is what determines the market value that they have to pay).

Okay Sir, It sounds quite sensible Thank you :-)

You are welcome :-)

You are welcome :-)