Bond Quote

Written By:
Paul Tracy
Updated October 4, 2020

What is a Bond Quote?

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

How Does a Bond Quote Work?

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 Does a Bond Quote Matter?

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