document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1082479>Question 1082479</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A $5000 bond had a selling price of $4500. What was the quote price? </SPAN>\n" );
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document.write( "The quoted price was $4500/$5000 * 100 = 90<BR>\n" );
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document.write( "A quoted price of 100 indicates a bond is \"at par\" (and hence yielding very close or at its coupon) <BR>\n" );
document.write( "A quoted price of <100 indicates a bond is \"trading below par\" and hence is yielding ABOVE its coupon, a bond's yield is inversely proportional to its trading price.<BR>\n" );
document.write( "A quoted price of >100 indicates a bond is \"trading above par\" and hence is yielding LESS than its coupon.\r<BR>\n" );
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document.write( "Of course these yields pertain to the prospective buyer, and do not necessarily reflect the yield the current owner is getting.   As bond prices go up, yield goes down, and vice-versa.  Bonds work this way because they pay out a fixed amount of dollars (the coupon) for each bond issued.     <BR>\n" );
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