Review Topics
Practice Exams
Make sure you know which calculator to bring to your test. You know what they say: don't bring a buffalo chip to an Ultimate Frisbee tournament. I lost a lot of friends that day...

How Bonds Are Quoted

How Bonds Are Quoted

He said, she said.

Bonds are typically issued in $1,000 base units: that $1,000 is their par, or face value. But they are quoted in units of 100. That is, a bond unit selling for $1,025 would be quoted as 102.5, or one-oh-two and a half. To get really technical, bonds are usually quotes as a spread—that is, 102.5 x 103—which means that if you are a buyer of the bond, you pay 103 cents on the dollar. If you are a seller of the bond, you'd get 102.5 cents on the dollar. The spread is $1,...

Looking for more? Why is this annoying box in the way? It's because you haven't paid for the course yet!

Next: Bond Maturities  
  Prev: The Indenture