Bond Prices

Bond Prices

The amount one pays to buy a bond. A bond price is usually represented as a percentage of par value. For example, if a bond has a par of $1,000 and is sold for $900, the price is published as 90%.
References in periodicals archive ?
FINCAD, the leading provider of multi-asset portfolio and risk management solutions, has announced that Nordic Bond Pricing (NBP), a provider of independent Nordic bond pricing, will use FINCAD's industry standard models to calculate accurate daily bond prices, key risk ratios and sensitivities, the company said.
Indeed, there is a direct inverse relationship between bond prices and interest rates.
But if the Federal Reserve hikes short-term interest rates at its next meet in mid-December -- for the first time in more than nine years -- junk bonds are less likely to feel the sting because the higher yields they pay will generally offset some of the impact of the drop in bond prices. Still junk bonds, especially short-term issues, could feel the sting as short term rates rise.
It meant bond prices had risen and there were opportunities to trade and realize a profit.
Emerging-market sovereign bond prices have increased by more than 60 per cent since mid-2007.
These figures don't take into account the deeper erosion in bond prices that began earlier this month, which some financial experts say could add up to "hundreds of millions of dollars" in losses for local investors.
He pointed out that the bond prices were influenced by prevailing market interest rates and would usually go up if there was a decrease in those rates, adding that bond prices are inversely proportional to yield, and capital gains can be made if interest rates should fall.
NEW YORK -- US stocks swung erratically Thursday as the dollar sank and bond prices rose, but finished solidly higher a day ahead of the government's release of US employment data for May.
Japanese government bond prices will likely be affected by speculation about U.S.
As prices of debt instruments all tend to move in the same direction, and in the opposite direction from interest rates (low interest rates mean high bond prices, and vice versa), the effect of lower Libor rates is to prop up the prices of bonds, asset-backed financial instruments, and other "securities." The end result is that the banks' balance sheets look healthier than they really are.
government bond prices dropped Tuesday, after the Treasury managed to borrow from investors at the lowest rate in seven months, according to AP.
It's notable that bond prices and bond yields are inversely related--ie, the lower the price of a bond, the higher its yield will be.