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What is bond to bond trading?
Bond is a debt program which publish by government.i can give you basic bond trading idea.Most bonds are traded by bonds dealer.bond dealer ask price for bid,when someone buy that is the highest bond price.
How do you calculate the issue price of a bond?
i have 50.00 savings bond issued June 1985 how much is it worth
When a bond is selling for more than its face value it's selling at a?
If a bond's price is greater than its Face Value, it is said to be "in premium" e.g. if the price is 105 with a FV of only 100. If the market price is below the Face Value, it is said to be "in discount" while should the market price equal the FV, the bond is said to be "at par".
What is the meaning of spread compression?
Spread compression happens as a result of the price of a bond going up and, as per the inverse relationship between price and yield, the yield goes down. There is risk of spread compression when demand for a bond increases because the increased demand can push up the price of a bond.
How can interest rate affect bond liquidity?
If interest rate has been increased, the price of the bond falls.... If price of the bond falls, the yield that can be earned increases... So, if interest rate increases, it will lead to increases in yield which forces people in investing in the bond.....And liquidity will be more in bond market... Plz confirm the information.........................
What is relationship between bond price and yield?
A bond yield is the price of a bond that an investor will hold said bond to maturity at. This relates to price as the price dictates when the investor will sell their bond.
What is the relationship between bond yields and price?
A bond yield is the price of a bond that an investor will hold said bond to maturity at. This relates to price as the price dictates when the investor will sell their bond.
Why does the price of a bond change over its lifetime?
Why does the price of a bond change over its lifetime?
Relationship between bond price and yield?
what is relationship between bond price and yield?
If a bond price increases what happens to yield to maturity?
The YTM on a Bond versus it's Price is inversely related. Thus when the Price of the Bond Increases, the YTM Decreases.
If the bond's price increases will it increase or decrease bond's yield?
neither once the bond is created the yield is set. the bond price is simply a reflection of the current rate and the rate, 'yield' of the bond.
What happens to a bond's yield if the price of the bond rises?
it rises
What are the factors that influence the bond interest rates or prices?
1, bond price move inversely to interest rate 2. a decrease in yield results in a larger change in price than increase in yield 3. change in yield, long term bond price changed more than the short term bond 4. bond price increases with maturity at a diminishing rate 5. for a given change in yield, bond price with low coupon rate will change more than the bond price with high coupon rate.
What is bond to bond trading?
Bond is a debt program which publish by government.i can give you basic bond trading idea.Most bonds are traded by bonds dealer.bond dealer ask price for bid,when someone buy that is the highest bond price.
If inflation rate increase what happen to bond's price?
if Infalation rate increase bond price will fall.
Why do bond prices and yields vary inversely?
Bonds are valued by discounting the coupon payments and the final repayment by the yield to maturity on comparable bonds. The bond payments discounted at the bond’s yield to maturity equal the bond price. You may also start with the bond price and ask what interest rate the bond offers. This interest rate that equates the present value of bond payments to the bond price is the yield to maturity. Because present values are lower when discount rates are higher, price and yield to maturity vary inversely.
What are Bond Premiums and Discounts?
Bond premiums refer to bonds that are issued at a price above its face value. for example, if the market rate for a bond is 8% and the stated rate on the bond is 9% then it would be a premium bond. Bond discounts refer to bonds that are issued at a price below its face value. For example, if the market rate for a bond is 9% and the stated rate on the bond is 10%, then it would be a discount bond.
