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I know there might be distractions in the testing facility (hellooooo bison cows), but try to keep your eyes on the prize.

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,...

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