เงณ0 bond price
โ
Current yield
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Trading at
Price = present value of all coupon payments plus the face value, discounted at the market yield. When the yield exceeds the coupon, the bond trades below par (at a discount).
Frequently Asked Questions
Why does a bondโs price move opposite to yields?
A bond pays fixed coupons. If market yields rise above the coupon rate, the bond is worth less (a discount); if yields fall below the coupon, it is worth more (a premium).
Calculate a bond price from its coupon, market yield and time to maturity.