Reading a Bond Quote
When you browse or search for bonds, you’ll view bond quotes, which appear similar to the graphic below.
While the details may vary, this image shows some of the common types of information you’ll see in a bond quote. The list below defines what these terms mean.
CUSIP: A unique alphanumeric identifier assigned to individual bonds. A CUSIP is sort of like a bond’s UPC symbol. Knowing a CUSIP makes it easy to find information about a specific bond. Here, the CUSIP is 123456AB7.
Sector: Corporate bonds are separated into business sectors, such as Industrials or Financials. This bond was issued by a company from the Industrials sector.
Qty: The quantity of bonds offered by the dealer. This dealer is offering 26 of these bonds.
Min: The minimum order quantity. Here, the dealer is willing to accept orders of at least five bonds.
Issue: The name of the issuer. Below the issuer’s name may be information on whether or not the bond is callable. This bond is non-callable.
Coupon: The stated coupon rate of a bond. The coupon rate for this bond is 8.750%.
Maturity: The date on which the face value of the bond is repaid and interest payments stop. This bond expires on August 15, 2021.
Rating: The credit rating of the bond. This bond is rated A.
YTM: This is the return on the bond, assuming it’s held to maturity. The YTM for this bond is 3.884%.
Price: The price for each $1,000 bond. This is listed as a percentage of its face value (e.g., 110 = 110%). This bond is trading for a premium price at 140.394, or $1,403.94.
Accrued Interest: Interest that has accumulated between the most recent payment and the sale date of a bond. When a bond is resold, the amount of accrued interest earned by the seller is added to the bond price. The accrued interest for this bond is $24.38.
