Series 53: 4.2.2.2.4. Bond Years

4.2.2.2.4. Bond Years

The exam may want you to know the term “bond year.” A bond year is the number of 12-month intervals between the dated date and the maturity date multiplied by the total number of bonds, measured in $1,000 increments. The increments will be $1,000 regardless of the par value of the bond. This means that a $5,000 par value bond would count as five increments, or five bonds. Bond years are used to calcula