Problems with the price of buying bonds? What do you say about the determination of bond prices?

The bond you are referring to is because this kind of bond is a bond that is listed and traded on the ** exchange, and it will be formed when there is a market transaction, reflecting investor expectations, supply and demand. Like the watermelons sold in the vegetable market, there are fewer people to eat, and the more people eat, the more expensive they are; On the contrary, if it is too much and it is cold, it will fall. Of course, the bond is not a watermelon, **** you can not sell, keep it to maturity, redeem it at face value, and have interest income every year.

If you sell the bond below the cost price, it is indeed a loss; Conversely, ** sells to earn the spread. There is also a kind of bond, such as the certificate treasury bond issued on the 16th, which is not listed and traded, and there is no **rise or fall; Like regular savings, the principal and interest are returned at maturity, and if you want to cash out halfway, you can't sell them in the market, so you can only redeem them in advance, deducting one-thousandth of the principal and interest.

The bonds you are talking about are generally treasury bonds or corporate bonds purchased through the market. Because the bonds in the market are publicly traded and circulated, that is to say, they may fluctuate due to changes in the relationship between supply and demand (buying and selling power), so it is also normal.

Usually, the market expects that the deposit interest rate will change, and the ** of the bond will fluctuate greatly. Or the **** of the market, which will also have a certain impact on the bond market, because capital has the nature of chasing profits.

If the market expects the deposit rate to rise, there will be a part of the funds flowing from the bond market to bank deposits, which has caused the bond **, if the **** is very large, your investment is likely to lose, so don't think that if you buy a bond, you must not return the loss.

If the purchase was 105 yuan, and now it falls to 100 yuan, it is considered a loss.

Bonds** are often influenced by many factors, but bonds** are not fixed. In a world of scarcity and the most expensive, there is only eternal supply and demand, and there is never a fixed **.

Refers to the bond at the time of issuance**. Theoretically, the face value of a bond is its **. But in fact, due to various considerations of the issuer or changes in the supply and demand of the capital market and interest rates, the market** of a bond is often separated from its face value, sometimes above the face value, sometimes below the face value.

The face value of a bond is fixed, but it changes frequently. The issuer's interest-bearing principal repayment is based on the face value of the bond, not **. Bonds are mainly divided into issuance and trading.

1. The shorter the outstanding period of a bond with a repayment period, the closer the bond** is to its final value (exchange**)m(1+rn), so the longer the outstanding period of the bond, the lower the **. In addition, the longer the repayment period, the greater the risk to the bond issuer and the lower the bond**.

2. The nominal interest rate of a bond is also the nominal interest rate of a bond The higher the nominal interest rate of a bond, the greater the yield to maturity, therefore.

3. The higher the selling price of the bond. Investors' Profit ExpectationsBond Investors' Profit Expectations (Return on Investment) Vary with Market Interest Rates If market interest rates are high, investors' profit expectations will also be high, and so will bonds. If market interest rates fall, bonds** will rise.

Nowhere is this more evident than when bonds are issued.

4. Corporate Reputation If the issuer has a high credit rating, the risk of the bond is very small, so their ** is high However, if the credit level is low, the bond ** will be low. Therefore, in the bond market, for bonds with other equal conditions, government bonds** are generally higher than financial bonds, and financial bonds** are generally higher than corporate bonds.

From the formula for calculating the yield on bond investment r=[m(1+r n)—p] (p n), the formula for calculating bond **p can be obtained p=m(1+r n) (1+r n), where m and n are constants. Then the main factors affecting the bond** are the pending period, coupon rate, and yield at the time of transfer.

Bonds** are divided into three categories according to the investment scope and risk-return characteristics: the first type is pure debt**, which only invests in various fixed income instruments and has low risk; The second type is the bond type that can subscribe for new shares, participate in **additional issuance**, convertible bonds or passively hold warrants, but the proportion of equity investment does not exceed 20% and the fixed income investment is not less than 80%; The third type is the partial debt hybrid type with an investment ratio of more than 20%. Investors can choose the corresponding products according to their risk tolerance.

Investors should pay full attention to the bond maturity, bond interest rate, resale terms, risk factors and other contents in the prospectus, and effectively protect their own interests.

A person's desire to allocate a certain asset depends on several factors: how large his capital is; the liquidity of the asset relative to other assets; yield relative to other assets; Relative to other assets.

First of all, why you can buy and sell bonds, in fact, it is to provide liquidity for bonds. For example, I have a million, I buy bonds, and they mature in three years. It's only been a year now, but I suddenly need the money urgently.

If the bonds can't be bought and sold, I have to finance them through other means; With that in mind, I might have hesitated to buy bonds in the first place. In fact, when China's treasury bonds first appeared, they had to be issued at a discount because they could not be traded, and they were contracted by various enterprises and institutions in the form of political tasks.

Based on the difference in expectations, the act of buying and selling is generated, the price difference is generated, and then the speculative people who specialize in capturing the price difference, that is, the people who buy and sell bonds to earn the price difference.

Bonds are subject to frequent changes, not certain, and are generally affected by many factors, while bonds are not certain and are not forever determined.

It is a measure of the yield of a bond.

To calculate the value of the change in yield, the yield value before and after the change in the bond is known.

The greater the yield value of the bond, the greater the volatility of the bond.

Bonds are subject to frequent changes, not certainly, according to the market supply and demand and changes in various international economic activities, so bonds are in flux all the time.

Bonds** are generally affected by many factors, and bonds** are not definitive.

They change as prices rise and fall, and the market for bonds** is often detached from its face value, sometimes above par and sometimes below par.

Financial Strength and Capital Structure:

The basic definition of a good business is that it takes more money than it consumes, and Graham recommends reading an annual report to see if the operating cash flow is growing steadily and then look down.

A popular concept for Warren Buffett is owner returns, which is net income plus amortization and depreciation minus normal capital expenditures.

Bonds can be held by purchasing treasury bonds over the counter, convertible bonds and short-term bonds in the market, or indirectly by purchasing bonds. The following will start with suggestions on how to buy and how to buy for individuals, and streamline the bond purchase process.

At present, the main channels for the purchase of savings treasury bonds are the members of the underwriting syndicate, and the members of the underwriting syndicate here are mainly banks, and there are two types of business channels: bank branch counters and online banking. At present, the large state-owned banks have a large proportion of sales quotas, mainly in the Industrial and Commercial Bank of China, the Construction Bank, the postal service, the Agricultural Bank of China, etc., among which the Industrial and Commercial Bank of China and the Postal Savings can be purchased through online banking. The timing of the purchase varies, but generally no earlier than 8:

30, no later than 16:30.

What does it mean that convertible bonds are divided into primary market subscription and secondary market purchase? The primary market is the first issuance, which is the same process as the subscription of **, the listed company will issue an announcement, you only need to click on the APP of the ** company to subscribe for new bonds. There is a high probability that the subscription of new bonds will have a good return, but you depend on your subscription amount, but it is not impossible to break the issue.

There is also a short-term bond product, such as 3 days, 7 days and other maturities, you can buy this kind of market weekend, you only need to select the bond column in the company's APP, and all varieties will be displayed for you to choose. First, to earn some income from the spare money in **, and secondly, to reduce the sunk cost of idle money.

The secondary market purchase is that the bond has been listed and circulated, and you buy other people's second-hand bonds to obtain the income from the price difference, which has a certain risk, which is similar to buying **.

You can also hold bonds indirectly by holding bonds**, the main funds of bonds** are invested in the bond market, and a small part is invested in currency products, saving the trouble of choosing.

All in all, bonds are divided into multiple varieties, and the overall risk is relatively low, and they can be purchased through a variety of channels and methods.

Disclaimer: The above content is for investors' reference only and does not constitute any investment advice, and investors should not substitute such information for their independent judgment or make decisions based solely on such information. The market is risky, and investors need to be cautious.

How to buy bonds in **buying, there are roughly the following three ways

1. Bank counters: buy savings treasury bonds

At present, the over-the-counter bond market only provides one bond variety, certificate treasury bonds, and this variety is not liquid and is only sold to individual investors, more play the function of savings, investors can only hold the maturity, to obtain coupon interest income; However, some banks will provide investors with the pledge of certificate-type treasury bonds, which provides a certain amount of liquidity.

To purchase certificate-type treasury bonds, investors only need to open an account at the bank counter with their valid identity documents。There is no account opening fee and maintenance fee for opening a personal treasury bond custodian account that is only used to save treasury bonds, and the income from treasury bonds is exempt from interest tax.

However, when opening an individual treasury bond custody account, a settlement account (debit card account or current passbook) should also be opened (or designated) with the same undertaking bank as the fund account of the treasury bond account to settle and redeem the principal and interest. Although it cannot be listed for trading, it can be redeemed in advance according to regulations.

2. Exchange: buy corporate bonds, convertible bonds, etc

At present, there are book-entry treasury bonds, enterprise bonds, corporate bonds and convertible bonds in circulation in the exchange bond marketIn this market, as long as individual investors open a bond account in the business department of the company, they can buy bonds like buying **, and they can also realize the spread of bonds. As long as you open an exchange** account, you can participate in the purchase.

The transaction cost of buying and selling bonds on an exchange is very low compared to buying**. First, stamp duty is exempted, and secondly, in order to promote the development of the bond market, trading commissions have been significantly reduced. According to rough estimates, the transaction cost of buying and selling bonds is about 5/10,000, which is about 1 10 of the transaction cost.

3. Entrusted purchase

In addition to treasury bonds and financial bonds, almost all bond market varieties are circulated in the interbank bond market, including subordinated bonds, short-term financing bonds of enterprises, ordinary financial bonds of commercial banks and foreign currency bonds. These varieties generally have higher returns, but individual investors are not yet able to invest directly. Bonds** can invest in treasury bonds, financial bonds, corporate bonds and convertible bonds, while banks' fixed income products can invest in a wider range, including treasury bonds, policy bank financial bonds, central bank bills, short-term financing bonds and other bonds issued in the national interbank market

Bonds, that is, debts, such as enterprises, banks, etc., are issued in accordance with legal procedures in accordance with legal procedures and promise to repay the principal and interest on a specified date. Many people choose bonds for investment and financial management. Here's a complete guide to buying bonds.

Step 1: The investor opens an account in the ** company, entrusts the ** business to buy and sell bonds, and signs the account opening contract.

Step 2: The merchant implements the bond trading business in accordance with the entrustment conditions through its representative or **person in the **exchange.

If your assets are more than 3 million, you can directly buy corporate bonds or convertible bonds, which have relatively high returns. However, if you are just an ordinary investor, you can only invest in book-entry treasury bonds and policy bank bonds. Treasury reverse repo and some ** or wealth management products that participate in bond investment.

These yields are all lower.

Step 3: Bond transactions are all T+0 transactions, after the bond is traded, the broker needs to fill in the transaction report on the day of the transaction, and notify the investor to deliver the delivered money or delivered bonds to the entrusted broker on time.

Step 4: The broker checks the transaction records and goes through the settlement and delivery procedures.

1. Account opening: provide basic information to the ** company, and open an account after determining the validity period of the contract;

2. Entrustment: After opening an account, to carry out listing transactions, investors also need to handle entrustment with ** company;

3. Transaction: After accepting the entrustment of investors, the company shall execute the entrustment to complete the bond transaction in a timely manner;

4. Liquidation: **The company calculates and determines the number and amount of bonds payable;

5. Transfer: The bond transfer will be completed after the bond transaction is completed and the delivery procedures are completed.

What is a bond.

Bonds are issued by debtors such as banks in accordance with the law to raise funds and promise to repay the principal and interest on time. A bond is a legally valid proof of creditor's rights and debts. The interest rate on a bond is generally determined, so the bond is a fixed interest rate**.

Bond yields are usually higher than bank deposit rates, but they are not entirely bond coupon rates and are primarily determined by buying and selling**. The more typical bonds issued by ** are treasury bonds, which are characterized by national credit as the basis, repayment ***, basically no risk, and high security.