How does bond pricing work?
When you see a price for a bond, it typically refers to how many “cents on the dollar” a bond trades for. So for a bond priced at “70,” you would be able to buy debt at 70 cents on the dollar. Remember, each bond represents $1,000 in debt. So it would cost $700 to buy a bond priced at 70 cents.
You can learn more about the basics of bond trading in Zach’s full report by clicking here.
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