How Understanding Price and Yield Bonds

Understanding the bond price is a bit different from the stock. When stock prices are expressed in the form of currency, then the bond price is usually expressed as a percentage (%), the percentage of the nominal value.


There are 3 (three) possible market price of the bonds offered, namely: (1) Par (score Pari), where the bond price equal to the nominal value (eg: bonds with a nominal value of USD 50 million sold at 100%, the bond's value it is 100% x Rp 50 million = USD 50 million); (2) at a premium (the premium), the bond price is greater than the nominal value (eg: bonds with a nominal value of Rp 50 million sold at a price of 102%, then the value bonds is 102% x Rp 50 million = USD 51 million); (3) at discount (with Discount), the bond price is less than the nominal value (eg: bonds with a nominal value of USD 50 million are sold at 98%, then the value of the bonds is 98% x Rp 50 million = USD 49 million).