2.7.1. Bond Notation
Corporate bond listings typically show the coupon (interest) rate, maturity date, and last price. The listing table in the media also shows the current yield and includes the volume traded. Corporate bond listings would look similar to these:
|
Corporate Bond Listing Example |
||||
|
Bonds |
Cur Yld |
Vol |
Close |
Net Chg |
|
ABC 6s 24 |
5.7 |
20 |
105 3/8 |
+1/4 |
|
XYZ 6 5/8 30 |
6.7 |
10 |
99 1/8 |
-1/8 |
The companies issuing the bonds are listed in the first column; in this case, ABC and XYZ. Following the names appears the interest rate paid by the bond as a percentage of its par value: ABC’s bonds pay 6%, and XYZ’s bonds pay 6 5/8%. The small “s” in the ABC listing refers to the semiannual nature of the payments. The ABC bonds mature in 2024. The XYZ bonds mature in 2030. The ABC bonds have a current yield of 5.7% based on their closing price of 105 3/8% of par, or $1,053.75, and the XYZ bonds have a current yield of 6.7% based on their closing price of 99 1/8% of par, or $991.25. For ABC, the volume traded the day before was $20,000, and the price rose 1/4 of a bond point, or $2.50. For XYZ, the volume traded the day before was $10,000, and the price fell by 1/8 of a bond point, or $1.25. If the description states 5M, it means $5,000 worth of bonds, or five $1,000 bonds