The fixed income financial instruments--Bond

   There are many kinds of financial instruments and the most popular of them are bonds,stock share,and funds.

   The bond is a instrument issued by the borrower and grants the investors the interest and the principal in future.Now let's talk about the most biggest market--bond market.If you want to invest the bond ,first you must know its price and its quotation.

   Usually the pricing of the securities is the discouting of their future cash flow and the bond price is determined in the same way.

   What I want to introduce the quotation of the bond ,especially in the US market .When quoting the bond prices ,traders quote the price as a percentaage of par valve.for example:a bond quoted in New Roman'; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: 宋体; mso-font-kerning: 1.0pt; mso-ansi-language: EN-US; mso-fareast-language: ZH-CN; mso-bidi-language: AR-SA">85^1/2  it means that the discount is 85.5*0.01=0.855.so the price of the bond is par value mutiplied by the 0.855.

   Another important factor influences the price is the duration. If you have interest ,you can discuss its importance in deciding which bond is the better option.