Summary of Bond Quotes

Federal, state, and local governments, as well as private sector corporations, issue bonds, which are a form of debt instrument. Regardless of the issuers, all bonds have finite life spans, after which they mature and are bought back by the issuers. Most bonds are sold at a face, or par, value of $1,000; however, there are times when this par value can be as high as $10,000. Once a bond begins trading in the secondary market, it may trade for more or less than its par value. Either way, its selling price is typically quoted as a percentage of par.

Treasury issues are quoted in 32nds, while municipal and corporate issues are quoted in eighths. Treasury bills, as well as zero coupon bonds, are sold at discounts. Rather than receiving periodic interest payments, the purchaser holds them until maturity, redeeming them at their full face values.

Despite some of these technical differences, all bonds are created and issued to generate income for the purchasers in exchange for the use of their money for a fixed period. As such, they can be ideal investments for anyone looking to invest for income.