I want to clarify my understanding of how much money will I get till and at the bond's maturity.
Let's take for example T-notes. The name of the bonds is US-T Govt Note 2.75 Feb15'24.
As I understand from the name, the bond will pay a 2.75% coupon on the money, each year, and will return me back the money at maturity.
I don't really understand what the columns in the IBKR platform mean. How is it connected to how much money will I get?
Images for clarification: https://i.imgur.com/nVDs0BF.png , https://i.imgur.com/QUUrDFW.png
- What is Current ask yield? The value is 4.579%
- What is Current ask price/size? I assume it's the minimum price a seller is willing to sell the asset. But what is the X$10,000 there?
- What is Current bid yield? What's the meaning of a yield on the bid? The value is 4.657%
- What is Current bid price/size? I assume it's the maximum price a buyer is willing to pay for the asset
- What is the Closing price? I assume it's the real price of the asset. The value is 97.68
- Assume I bought the bond for 98. As I understand, the money I will get for each bond is 100 at maturity, right? That means I make a profit also on the price difference, besides the coupons I get
- Assume I bought the bond for 105. As I understand, I will get 100 at maturity. Does it mean that I'll lose money on this price difference?
- Assume I'm buying the bond more than 1 year before maturity. That means I will get 1 coupon and the money at maturity, right?
- Assume I'm buying the bond less than 1 year before maturity. Let's say, 8 months before maturity. Will I get any coupons?
Submitted October 23, 2022 at 02:30AM by igaloly https://ift.tt/62xvq73
