Where to find bond pricing

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The coupon shows the interest that the respective bond yields. The issuer of the bond takes out a loan on the capital market and therefore owes a debt to the purchaser of the bond. Purchasers of bonds consequently have a claim against the issuer. For this reason, bonds are also referred to as bonds or debt securities. The credit terms for bonds, such as the rate of return, term and redemption, are defined precisely in advance.

Bonds are traded on the bond market. Rates 3 Months. Rates 6 Months. Rates 2 Years. Rates 3 Years. Rates 5 Years. Rates 10 Year. Like a stock, the value of a bond determines whether it is a suitable investment for a portfolio and hence, is an integral step in bond investing. The theoretical fair value of a bond is calculated by discounting the future value of its coupon payments by an appropriate discount rate.

The discount rate used is the yield to maturity, which is the rate of return that an investor will get if they reinvested every coupon payment from the bond at a fixed interest rate until the bond matures.

It takes into account the price of a bond, par value, coupon rate, and time to maturity. The size of the U. Calculating the value of a coupon bond factors in the annual or semi-annual coupon payment and the par value of the bond. The present value of expected cash flows is added to the present value of the face value of the bond as seen in the following formula:. A zero-coupon bond makes no annual or semi-annual coupon payments for the duration of the bond.

Instead, it is sold at a deep discount to par when issued. To calculate the value of a zero-coupon bond, we only need to find the present value of the face value. Following our example above, if the bond paid no coupons to investors, its value will simply be:.

Under both calculations, a coupon-paying bond is more valuable than a zero-coupon bond. Not exactly. Both stocks and bonds are generally valued using discounted cash flow analysis—which takes the net present value of future cash flows that are owed by a security. Unlike stocks, bonds are composed of an interest coupon component and a principal component that is returned when the bond matures.

Bond valuation takes the present value of each component and adds them together. A bond's face or par value will often differ from its market value. This has to do with several factors including changes to interest rates, a company's credit rating, time to maturity, whether there are any call provisions or other embedded options, and if the bond is secured or unsecured.

A bond will always mature at its face value when the principal originally loaned is returned. A bond that pays a fixed coupon will see its price vary inversely with interest rates. Bond valuation looks at discounted cash flows at their net present value if held to maturity. Longer-term bonds have a higher duration, all else equal. Treasury Bond Results Results 5 year May Treasury Bond Results Results 5 30 yr - March Treasury Bond Results Results 5 30 years - August Treasury Bond Results Results 5 10 yr - January Treasury Bond Results Results 5 10 year July Treasury Bond Results Results 30 2 yr - February Treasury Bond Results Results 25 yr re-opening July Treasury Bond Results Results 2 yr - November Treasury Bond Results Results 2 10 20 yr - May