How do muni bond price quotes work?
I'm taking a securities assessment and be confused more or less how muni bond prices are quoted. With corporate bonds, if it say 97.5 it manner 97 and 5/8. With management bonds it mode 97 and 5/32. What does it be determined near muni bonds?
Answers:
They are timetabled as "6% bond, 6.5% basis" which system it have a coupon transfer of funds of 6% and let go to later life of 6.5%.
If it is quoted on price, it is by the 8ths...i.e. 95 and 3/8. Also, when calculating interest, corporate and municipal bonds use 360 year year and parliament bonds use 365 light of day year.
Ron, ChFC
Financial Advisor
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Answers:
They are timetabled as "6% bond, 6.5% basis" which system it have a coupon transfer of funds of 6% and let go to later life of 6.5%.
If it is quoted on price, it is by the 8ths...i.e. 95 and 3/8. Also, when calculating interest, corporate and municipal bonds use 360 year year and parliament bonds use 365 light of day year.
Ron, ChFC
Financial Advisor