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What is the difference between a bond bid and ask price?

The bond bid price is the highest price a buyer is willing to pay for a bond, while the bond ask price is the lowest price a seller is willing to accept for the bond. The difference between the bid and ask price is known as the bid-ask spread.


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.


Is a bond coupon the annual interest divided by the current bond price?

No, a bond coupon refers to the annual interest payment that the bondholder receives, expressed as a percentage of the bond's face value (or par value). To find the bond's current yield, you would divide the annual coupon payment by the current market price of the bond. This provides a measure of the income return on the bond based on its current price, rather than its face value.


What is the difference between bid and ask bonds in the bond market?

In the bond market, the bid price is the highest price a buyer is willing to pay for a bond, while the ask price is the lowest price a seller is willing to accept. The difference between the bid and ask prices is known as the bid-ask spread.


How to find the price of a bond?

To find the price of a bond, you can use the bond pricing formula, which takes into account factors such as the bond's face value, coupon rate, time to maturity, and prevailing interest rates. This formula helps determine the present value of the bond's future cash flows.

Related Questions

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.


What is the difference between a bond bid and ask price?

The bond bid price is the highest price a buyer is willing to pay for a bond, while the bond ask price is the lowest price a seller is willing to accept for the bond. The difference between the bid and ask price is known as the bid-ask spread.


Why does the price of a bond change over its lifetime?

Why does the price of a bond change over its lifetime?


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 is the purchase price of a bond called?

The purchase price of a bond is called the "face value" or "par value" of the bond. This is the amount that the bond issuer agrees to repay the bondholder at maturity.


What happens to a bond's yield if the price of the bond rises?

it rises


If a bond rating gets better what happens to the bond price?

If a bond rating improves, it indicates lower risk and increased creditworthiness, leading to increased demand for the bond. This increased demand drives the bond price up.


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.