Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

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.