# Bond Quote

## What it is:

A bond quote refers to a bond's market price.

## How it works (Example):

The market prices of bonds are quoted as a percentage of the bonds' par value. Bonds issued by companies are quoted in increments of 1/8th (0.125) and bonds issued by the government are quoted in increments of 1/32nd (0.03125).

For instance, a corporate bond with a par value of \$1000 quoted at 80.125 would have a market value of \$1,000 * 0.80125 = \$801.25.

Likewise, a government-issued bond with a \$1,000 par value quoted at 85.03125 would have a market value of \$1,000 * 0.8503125 = \$850.3125.

## Why it Matters:

Bond quotes indicate to the prospective buyer whether a given bond is or was trading at discount or at a premium to par value.

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