The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments

URL:  https://boards.fool.com/am-the-typical-value-of-a-bond-is-1000-when-it-27699090.aspx

Subject:  Re: California Bonds Date:  5/23/2009  12:56 PM
Author:  blacktreechaser Number:  27611 of 36766

AM,

The typical value of a bond is $1,000 when it is first issued. Some municipal bonds are sold in increments of $5,000.

You'll sometimes see it expressed as $100. It means $1,000.

The market value of any bond goes up and down, mostly inversely to interest rates, and up and down with changes to the credit worthiness of the issuer.

If you buy a bond for $1,000, and interest rates go down, the value of the bond will go up. So it could be selling for $1,100. You might see it expressed as $110.

If you buy a bond for $1,100, you will only get $1,000 back when it matures, or is called. If it gets called before you recieve one hundred dollars in interest payments, you will lose money on the transaction.
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us