Money: How Money Determines the Price of a Bond

SUMMARY

This article describes how Microsoft Money determines the value of a bond.

The current price for a bond is typically expressed as a percentage of the par value for the bond.

For example, a bond price of 98.5 means that the bond's value is currently at 98.5% of its par value. To enter the correct price in a Money investment transaction, type 98.5 in the Price box.

If the current value of the bond exceeds the par value, the bond price may no longer be quoted as a percentage value. For example, if the price quoted for a bond is 1.05, the price is actually 105% of par value, and you should type 105 in the Price box.

Note If you type 1.05, Money assumes that the bond price is 1.05 percent of the bond's par value.