Money: How Money Determines the Price of a Bond (121903)


The information in this article applies to:

  • Microsoft Money 2004 Deluxe
  • Microsoft Money 2003 Deluxe
  • Microsoft Money Deluxe 2002
  • Microsoft Money 2001
  • Microsoft Money 2000
  • Microsoft Money 99
  • Microsoft Money 98
  • Microsoft Money 97
  • Microsoft Money 2000 Business and Personal
  • Microsoft Money 98 Deluxe Edition
  • Microsoft Money 98 Financial Suite
This article was previously published under Q121903

SUMMARY

This article describes how Microsoft Money determines the value of a bond.

The current price for a bond is typically expressed as a percentage of the par value for the bond.

For example, a bond price of 98.5 means that the bond's value is currently at 98.5% of its par value. To enter the correct price in a Money investment transaction, type 98.5 in the Price box.

If the current value of the bond exceeds the par value, the bond price may no longer be quoted as a percentage value. For example, if the price quoted for a bond is 1.05, the price is actually 105% of par value, and you should type 105 in the Price box.

Note If you type 1.05, Money assumes that the bond price is 1.05 percent of the bond's par value.

MORE INFORMATION

In Money 99 or earlier, you can configure the program to use the actual current price for a bond instead of the percentage of the par value for the bond. To do this:
  1. On the Tools menu, click Options.
  2. Click the Investments tab.
  3. Click to clear the Treat bond prices as a percentage of par value check box.
  4. Click OK.
Note You cannot change the method for determing bond values in Microsoft Money 2000 or later.

REFERENCES

For more information about bond investments, see your Money printed documentation or online Help.
Modification Type:MajorLast Reviewed:1/5/2005
Keywords:kbhowto kbMoneyInvest KB121903
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