How Bond Prices and Yields Work
Redazione Financial World News · Spiegazione educativa · Come reperiamo i rendimenti
Price and yield are two languages for one fact: the discount rate on future coupons and par.
Il briefing completo di questa guida è in inglese. Titolo, sintesi e navigazione sono nella tua lingua, così puoi decidere se continuare a leggere.
How Bond Prices and Yields Work — the mechanics
If required yield goes up, price goes down. If required yield goes down, price goes up. Coupon is stuck; yield is alive. That is the whole subject in one line — the rest is compounding and conventions.
Price up, yield down; price down, yield up. The coupon is stuck. The market changes the only free variable — price — so the internal rate of return clears.
A 5% coupon gilt at 90 is not ‘better’ than a 1% gilt at 70 until you compute YTM and duration. Screens that sort by coupon are toys.
Dirty price is the cash. Clean price is the quote. Yield should be solved off dirty, with the right frequency.
Official sources (International guides)
Primary statistics and prospectuses for International guides are published by the issuer, not by this newsroom. The labelled links at the end of this page go to those official sites (DMO, TreasuryDirect, Finanzagentur, MEF, AFT, SNB or ECB as relevant).
Our live board is a teaching overlay: dated prints, named sources, estimated ISIN lines. It is not a replacement for the issuer’s calendar.
Punti chiave
- Price up, yield down; price down, yield up.
- Prices and yields change. When this site quotes them, it dates them on the live board.
- Credit of a G7 government in its own currency is not the same as a stable screen price, and not the same as a bank deposit.
FAQ
- Can yield and coupon be equal?
- When the bond trades at par, yield to maturity equals the coupon rate (ignoring some day-count details).