{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

FINC 322 - Chapter 14 How To Read Bond Quotes

FINC 322 - Chapter 14 How To Read Bond Quotes -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Understanding Price and Yield Information There is a tremendous amount of information available on prices and yields of Treasuries from a wide variety of sources. Local and national newspapers, cable TV stations, investment advisors and a multitude of websites offer in-depth background and up-to-the-minute data. Two useful websites to look for general information are the U.S. Treasury’s Bureau of the Public Debt and Investing in Bonds , this website from the Securities Industry and Financial Markets Association. The price and yield of a U.S. Treasury security are linked. From the time a bond is originally issued until the day it matures or is called, its price in the marketplace will fluctuate depending on the particular terms of that bond as well as general market conditions, including prevailing interest rates, the bond’s credit and other factors. Because of these fluctuations, the value of a bond will likely be higher or lower than its original face value if you sell it before it matures. In general, when interest rates fall, prices of outstanding bonds with higher rates rise. The inverse
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}