Google Answers Logo
View Question
Q: finance- bonds ( Answered 5 out of 5 stars,   0 Comments )
Subject: finance- bonds
Category: Business and Money > Accounting
Asked by: fatima1102-ga
List Price: $2.00
Posted: 10 Sep 2005 23:37 PDT
Expires: 10 Oct 2005 23:37 PDT
Question ID: 566673
How much will you have to pay today, August 15th, for an 8% coupon, 
            $1,000 par value, bond quoted at 95? The bond pays interest 
            semiannually, on June 1 and December 1.
Subject: Re: finance- bonds
Answered By: omnivorous-ga on 11 Sep 2005 06:49 PDT
Rated:5 out of 5 stars
Fatima1102 --

Bonds are priced in "bond points," which indicate the percent of the
face value being paid --

Trading Glossary
"Bond points" (undated)

You've indicated that your $1,000 par value bond is priced at 95 --
meaning that you're paying $950 (before any commission).  Your actual
yield is higher than 8%, both because of the discount and because of
the timing of your purchase (bought in August, you're only waiting
until December for your first $40 payment).

Google search strategy:
"bond points" definition

Best regards,

fatima1102-ga rated this answer:5 out of 5 stars

There are no comments at this time.

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  

Google Home - Answers FAQ - Terms of Service - Privacy Policy