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I have two questions:

  1. If I want to invest 10,000€ in specific bond with a par value of 1,000€. When I make order, what do I get (10 bonds or one bond that is worth 10,000€)?

  2. If I buy a 30 year bond that has 5% coupon yield, below par value of 1,000€ (800€) (can I make an order for 10,000€ or it needs to be a multiple of 800, that relates to first question), then I would get a yield of maturity (29 years) of 6.33%. For how much can I sell my bond or bonds? (relates to first question) after 5 years if the price would be 1,400€?

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  • Welcome to Economics.SE. Questions of personal investing and personal finance are off topics on this site. This question might be on topic on personal finance and money stack so it is migrated there. – 1muflon1 Mar 2 at 23:51
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    Welcome new user. That looks like a good question to me, thanks – Fattie Mar 3 at 0:24
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    Not sure I understand your questions. You specifically say "If I buy a bond". You buy a bond you get a bond. If you buy 10 bonds you get 10 bonds. – ApplePie Mar 3 at 2:58
  • I tried to update my question @ApplePie – klemsi123 Mar 3 at 8:56
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If I want to invest 10,000€ in specific bond with a par value of 1,000€. When I make order, what do I get (10 bonds or one bond that is worth 10,000€)?

You "get" 10 bonds - meaning that you can sell part of this lot (in whole bond increments) if you want to.

If I buy a 30 year bond that has 5% coupon yield, below par value of 1,000€ (800€) (can I make an order for 10,000€ or it needs to be a multiple of 800, that relates to first question),

You would pay 800 for each bond that you buy; they have to be bought in whole bond increments. For 10,000 you could buy 12 bonds for 9,600 and have 400 left over.

then I would get a yield of maturity (29 years) of 6.33%. For how much can I sell my bond or bonds? (relates to first question) after 5 years if the price would be 1,400€?

If the "price" is 1,400 then you can sell your bonds for 1,400 each.

Note that it's very unusual for bonds to increase that much in price. For a bond to go from selling for a discount to selling for that much above par would mean a dramatic collapse in interest rates, since your bond would be much more valuable because it pays a higher interest rate than other bonds that are issued after rates drop.

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I think I found an answer.

If I would want to invest 10.000€ in bond I could increase face value in thousands. In my case I could buy 13 * 1.000 which is face value for 13 * 800€ which is trading price (10.400€). After 5 years I could sell it for 13 * 1.400€ (future trading price) (18.200€). I would also get coupons of 5% every year (13 * 50€ * 5 years = 3.250€). So the profit would be (18.200€ + 3.250€ coupons - 10.400€ initial investment = 11.050€).

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