Series 66: Review Of Bond Nomenclature

Review of Bond Nomenclature

Recall that bonds are quoted in the market in terms of their prices and yields to maturity. Price is quoted in terms of bond points. A bond point represents one hundredth of par, or $10 for bonds with a par value of $1,000. So a bond valued at par will be quoted at 100, meaning 100 points; a discount bond worth $900 will be quoted at 90. Similarly, a basis point equals one hund