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[kevin oleary]
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LSDefine
Simple English definitions for legal terms
bond table
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A quick definition of bond table:
A bond table is a chart that helps figure out how much a bond is worth right now. It looks at how much money the bond pays out (called the coupon rate), how long until the bond is paid off (called time to maturity), and how much money you would make if you held onto the bond until it was paid off (called effective yield). By using this chart, you can see how much money you could make if you bought or sold a bond.
A more thorough explanation:
A bond table is a tool used to calculate the current value of a bond based on its coupon rate, time to maturity, and effective yield if held to maturity.
For example, let's say you have a bond with a coupon rate of 5%, a time to maturity of 10 years, and an effective yield of 6%. Using a bond table, you can determine the current value of the bond based on these factors.
The bond table takes into account the time value of money, which means that the longer the time to maturity, the lower the current value of the bond. Similarly, the higher the coupon rate and effective yield, the higher the current value of the bond.
Overall, a bond table is a useful tool for investors to determine the current value of their bond investments and make informed decisions about buying and selling bonds.