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What is bond to bond trading?

Updated: 9/18/2023
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10y ago

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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.

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Q: What is bond to bond trading?
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What does the NYSE do?

It arranges stock and bond trading of many large and established companies.


What is the role of a trading assistant job with a financial institution?

A trading assistant works under the supervision of a head trader. The responsibilities of a trading assistant include ensuring that a business enterprise or a financial institution receives correct bond transactions or security prices in stock and applying mathematical acumen for the assessment of price levels on securities exchanges.


What makes some bonds sell at a premium while others sell at a discount?

Bonds trade at a premium or discount based on the interest rate demanded by the markets for that specific maturity, credit quality, and details vs. the rate demanded at the time of issue. - Example: Trading at a Discount - For example, the 4.5% US Government bond maturity 02/15/16 is currently trading at a discount. At issuance, you could buy this bond for $100.00 and receive $4.50 every year in interest. However, interest rates are higher today than they were when the bond was issued (currently 4.85% for this maturity/credit quality). Therefore, to receive 4.85% in interest, you must pay less than 100 for the bond you would have paid at issuance. The reverse is true for bonds trading at a premium. If the interest rate had fallen to 4.00%, you would be willing to pay more than 100.00 for the bond.


What does it mean for a bond to be issued at a discount or premium?

The Conversion Premium is the amount by which the current price of a convertible security exceeds the current market value of the stock into which it may be converted. For example, a bond with a price of $110, convertible into 20 units of stock, trading at $5.10 (totalling $102) would have a conversion premium of $8.


Will a bond's Yield to Maturity increase or decrease if there is a change in the bankruptcy code that makes it more difficult for bondholders to receive payments if the firm declares bankruptcy?

Assuming that this situation occurs after the Bond is issued and is trading in the secondary market. All things being equal, if the change is not already factored into the price or yield of the bond it would increase the YTM. However, for a AAA rated bond the increase will be much lesser than the increase on a low rated bond. Typic ally for a low rated bond the increase in YTM wouldn't matter much since the liquidity of it would decrease sharply if the firm were to go bankrupt.

Related questions

What does the NYSE do?

It arranges stock and bond trading of many large and established companies.


How does one know if online bond trading is reliable?

The best way to determine if online bond trading at a particular website is reliable would be to find a review. Some places to find reviews online are Brokerage Review and Reviews.


Is it worth trading in Naruto the broken bond towards Red Faction guerrilla?

God yes!


Where is good place to sell your old James Bond collectibles?

eBay. or trading post but eBay is best.


What di NYSE do?

arranges stock and bond trading for the largest and most established companies in the united states


What are bond funds, and where can I get them?

A bond fund is an investment in bonds and other types of securities. There are many different types of bond funds such as those based on treasury securities, or mortgage bonds. You can buy these through any reputable online trading website or from a stockbroker.


If a coupon bond is selling at par does the current yield equal its yield to maturity?

Yield usually refers to yield to maturity. If a bond is trading at par it usually means the yield to maturity is equal to the coupon.


What does the R157 capital market bond rate indicate?

This indicates the rate at which the R157 bond is trading. This rate however is used frequently to describe the Risk Free Rate of Return for the market, which is required for CAPM calculations.


Of the taxable and tax exempt formats, which municipal bond trading has the least risk involved.?

General obligation bonds and revenue bonds are both types of municipal bond trading bonds. They both are fairly low-risk because they have a good payout in general. However, the trader does have to worry about marketplace interest increases and tax-bracket changes.


What is a pary?

A pari is a situation when trading bonds when the bond is sold for 100% of it's value. A bond has a specific value, but is not always sold at that same value. It could be sold for more (above pari) or less to improve (below pari) the success of that bond. When the bonds buy price is 100% of it's value, it's called a "bond a pari".


What does the term PB in international trading mean?

Performance bond A surety bond between two parties, insuring one party against loss if the terms of a contract are not fulfilled. Usually part of a construction contract or supply agreement.


What sort of financial product are Index EFTs?

Indexed EFTs are indexed electronic trading funds. Indexed EFTs are used by one in the stock market interested in trading stocks. Most EFTs track stock indexes or bond indexes.