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Investment / Re: Eurobond by alonso071: 1:34pm On Oct 14, 2018
I am intrested in the euro bond. thanks for all the information shared
ernie4life:
Eurobonds are settled at par Value $100 per unit.
When do we say a bond is trading at a discount?
A bond is said to be trading at discount when it’s trading at a value less than the unit price of $100 i.e. $95.50, $99.20, $85.45 etc. when you buy a bond at discount upon maturity of the bond you will be paid back at per value of $100 per value.
When do we say a bond is trading at Premium?
When a bond is trading at a price above the par value then such a bond is said to be trading at premium i.e. $105, $120, $101.40 etc. when you buy a bond at premium please not that upon maturity you will be settled at $100 per unit.

The question on your mind now is, why should I buy a bond trading at a premium when I can buy a bond trading at a discount?
Bonds usually trade at discount when its coupon is lower than prevailing rate so that the discount can account for the low coupon/rate thereby increasing its yield to make up for the low rate while bonds usually trade at premium when its rate is higher than prevailing rate, it’s just a way of maintaining balance.

So, most times bonds trading at premium have higher yields.

So, what should you consider when buying a bond that reflects what you get out of a bond?

OFFER YIELD
Offer yield represents the effective return a bond will give, so if you want to purchase a bond ask your financial adviser what the offer yield is.
If you are buying a bond and you don’t plan to hold till maturity, you may want to consider a bond that is highly liquid and the only way to know this is through the liquidity score which shows how liquid a bond is.

1 Like

Jokes Etc / Re: This Guy Is Going To Teach You How To Drink Water by alonso071: 11:59pm On Jun 10, 2012
[size=20pt]Joblessness[/size]
Jokes Etc / Re: May D Good Lord Deliver Us From D Hands Of Akpan Oh..... by alonso071: 11:53pm On Jun 10, 2012
undecided classical tale of copy and paste. oya make we laugh.[size=16pt]hahaha very funny[/size]
Jokes Etc / Re: America Aint Superior 2 Us by alonso071: 11:49pm On Jun 10, 2012
Tanfikos:

Infact, we even tight pass them:
They invented Yahoo!, we invented "yahoo yahoo!!" <double>

small sense

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