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Well its the price that equates the number of buyer and sellers of that bond on any given day. The price is generated based on the risk profile of the particular bond. So for example is a company's risk profile is increasing (i.e. BP where obama is about to slam them for a settlement) then the risk profile goes up - fewer people want to buy or own the bonds and so the price goes down.
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When a bond is selling for more than its face value it's selling at a?
If a bond's price is greater than its Face Value, it is said to be "in premium" e.g. if the price is 105 with a FV of only 100. If the market price is below the Face Value, it is said to be "in discount" while should the market price equal the FV, the bond is said to be "at par".
Is a bond's par value not necessarily the same as its market value?
true
Tell me something about valuation of a bond?
Bond valuation has one fundamental principle. This principle is that the bond has a value that is equal to the present value of the expected cash flow that will occur in the future.
What is the difference between stock market and bond market?
Equity is bought and sold in the stock marketwhile debt is bought and sold in the bond market.
How does one find out whether an old bearer bond has any value?
Examine the bond carefully. Some bonds have the value printed on them. If the bond has reached its full maturity, this is the value of your bond. If there is no value on it, you can take it to a bond specialist and have it appraised.
What is market rate of bond?
Market rate of bond is that rate at which that bond will be sale in market and it is different from face value of bond as well as book value of bond.
When a bond is selling for more than its face value it's selling at a?
If a bond's price is greater than its Face Value, it is said to be "in premium" e.g. if the price is 105 with a FV of only 100. If the market price is below the Face Value, it is said to be "in discount" while should the market price equal the FV, the bond is said to be "at par".
Why market value of a bond will fall when the interest rate rise on new bonds of equal risk?
Because the bond is no longer making money at the rate of current prices. Its future value is less than other equally face bonds so its market price dropes to compensate
Is a bond's par value not necessarily the same as its market value?
true
What is the value of the U.S. bond market?
145 trillion
What is the sale amount of a bond called?
The sale amount of a bond is called the face value or par value of the bond. It is the amount that the bond issuer agrees to repay to the bondholder upon maturity.
What is the amount of a bond called?
I think it's called a market value.
When the interest rate on a bond and its yield to maturity are equal the bond will trade at par value?
wes
What are Bond Premiums and Discounts?
Bond premiums refer to bonds that are issued at a price above its face value. for example, if the market rate for a bond is 8% and the stated rate on the bond is 9% then it would be a premium bond. Bond discounts refer to bonds that are issued at a price below its face value. For example, if the market rate for a bond is 9% and the stated rate on the bond is 10%, then it would be a discount bond.
How do you calculate fair market value for date of death for bonds?
There are websites that will allow you to input the bond's CUSIP number and date, and it will tell you the value. Google "bond" "CUSIP" and "value".
Tell me something about valuation of a bond?
Bond valuation has one fundamental principle. This principle is that the bond has a value that is equal to the present value of the expected cash flow that will occur in the future.
The current yield on a bond is equal to?
Annual interest divided by the current market price
