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Cur. Yld. Vol Close Net Chg.
PacBell 6 5/8 34 6.7
115 99 1/2 In the first column you find three pieces
of information. The first is the abbreviation
for the company that issued the bond. Here
you see “PacBell,” which stands for Pacific
Bell, the telecommunications company. Next
to that you see “6 5/8,” which indicates the
coupon rate of the bond. Next you see “34,” the year the bond matures, which in this
case it is 2034.
In the second column you find the current yield. (We showed how to compute the
yield on a bond earlier.) This current yield
means that if the bond is purchased today
(hence the word current), it will provide a
yield of 6.7 percent.
In the third column you find the volume
of sales in dollars for a particular day. The
number here is 115, so the dollar volume
today is $115,000.
The fourth column indicates the closing
price for the bond on this particular day: 99
1/2. Bond prices are quoted in points and
fractions; each point is $10. Thus, 99 1/2 is
$999.50 (99.5 10 $999.50).
In the fifth column we see the net change
for the day. The “ 3/4” means the price on
this day was $7.50 lower than it was the day
before. At City Hall in
New York City the
might decide that
the city needs a new
football stadium and
that the best way to
of the stadium would
be to sell bonds.
What do we call
the type of bonds
that the city would
sell? Treasury Bonds
Not all publications present Treasury
bond information in exactly the same format. The following format is common.
7 3/4 Feb. 09 (3)
Section 2 Bonds 447 16 (428-459) EMC Chap 16 Storing your valuables in a lock box is
safe and secure but
offers no return on
your assets. Buying
high-risk stocks and
bonds, on the other
hand offers an
opportunity for high
losses. What sort of
investment strategy do you think is
the wisest? 5/8/06 5:05 PM Page 448 In the first column we find...
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This document was uploaded on 01/16/2014.
- Winter '14