You didn't really give enough info but I'll do my best. Bonds are priced in percentages. Here in the US they are usually sold in $5,000 increments.
Which parameters can you use to compare similar bonds? How similar? Underlying rating. Coupons. Yield. Term/Length. Call date. Call provisions. What backs the bonds (ie; revenue, taxes (limited or unlimited)). What their tax status is. Bank qualified status. Insurance?
This to all my hatin' folks seeing me getting guac right now..
Okay, after spending 12 seconds on Google, here's the details the OP failed to include:
50,000 EUR par Serbian bond (I'm assuming the Serbian government)
4.125% annual coupon
October 2013 maturity, next coupon payment is at maturity
Current Price 103.497 (according to luxnet)
Doesn't appear to be callable.
"My caddie's chauffeur informs me that a bank is a place where people put money that isn't properly invested."
There are two screenshots of corporate bonds(Sweden and Czech) with the following data (coupon, ask ytm, maturity date, ask price)
They also provide similar screenshots to Swedish and Czech government bonds(coupon, maturity, bid/ask, YTM, credit rating) in EUR and SEK currencies + images of EUR and SEK swap curves (3M, 1Y, 2Y, 3Y, 5Y, 7Y... 30Y)
Given this data i have to chose which corporate bond i would buy and why? Which of the two issuers are more reliable considering that the government would not back up them in case of bankruptcy. Would i change my mind if the government would back up the company in case of a risk of bankruptcy.
What do i have so far:
I have plotted both coupon % and YTM % on a timeline and it seems that the Swedish company offers better rates for the same maturity dates as Czech. Secondly Swedish government bonds have AAA rating while Czech have only A+. So i'm considering a Swedish company bond, but i have no idea which one of them. Also i'm looking at the spread between the corporate bond and the government bond to see which one has the lowest (less risk) but they have different maturities so i cannot compare them. Any ideas are welcomed.
Thank you
You killed the Greece spread goes up, spread goes down, from Wall Street they all play like a freak, Goldman Sachs 'o beat.
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You killed the Greece spread goes up, spread goes down, from Wall Street they all play like a freak, Goldman Sachs 'o beat.
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You didn't really give enough info but I'll do my best. Bonds are priced in percentages. Here in the US they are usually sold in $5,000 increments.
Which parameters can you use to compare similar bonds? How similar? Underlying rating. Coupons. Yield. Term/Length. Call date. Call provisions. What backs the bonds (ie; revenue, taxes (limited or unlimited)). What their tax status is. Bank qualified status. Insurance?
Face value is the Par value of the bond. So you are saying it has no Face value? So is it a perpetual bond?
Okay, after spending 12 seconds on Google, here's the details the OP failed to include:
50,000 EUR par Serbian bond (I'm assuming the Serbian government) 4.125% annual coupon October 2013 maturity, next coupon payment is at maturity Current Price 103.497 (according to luxnet)
Doesn't appear to be callable.
There are two screenshots of corporate bonds(Sweden and Czech) with the following data (coupon, ask ytm, maturity date, ask price)
They also provide similar screenshots to Swedish and Czech government bonds(coupon, maturity, bid/ask, YTM, credit rating) in EUR and SEK currencies + images of EUR and SEK swap curves (3M, 1Y, 2Y, 3Y, 5Y, 7Y... 30Y)
Given this data i have to chose which corporate bond i would buy and why? Which of the two issuers are more reliable considering that the government would not back up them in case of bankruptcy. Would i change my mind if the government would back up the company in case of a risk of bankruptcy.
What do i have so far:
I have plotted both coupon % and YTM % on a timeline and it seems that the Swedish company offers better rates for the same maturity dates as Czech. Secondly Swedish government bonds have AAA rating while Czech have only A+. So i'm considering a Swedish company bond, but i have no idea which one of them. Also i'm looking at the spread between the corporate bond and the government bond to see which one has the lowest (less risk) but they have different maturities so i cannot compare them. Any ideas are welcomed.
Thank you
its a bullet bond, with an A- rating and a 50k par value priced at 102.883
between a swedish govt and a swedish corp, all else being equal, the govt will have much less risk (hence much less yield)
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