Stock Market

Like stocks, bonds are also listed in tables in the financial section of newspapers. Bond tables are useful for two reasons:

If you own a bond and want to sell it, chances are the price is going to be different than what you paid for it. You need to know how different.

Most bonds are purchased from the secondary market. The table allows you to research and compare current yields for various issues.

A bond table is a handy way to adjust to changes in bond yields and/or prices. When bonds are first issued, they are priced to sell at par, or 100. As they trade, their price moves above or below 100, depending on the demand for the bonds. If a bond's price falls below 100, it is considered to be selling at a discount. If it rises above 100, it is selling at a premium. Bonds trade in "32nds"; 1/32, 2/32 price movements. For example, in May of 2002, the Treasury sold five-year notes that mature in May, 2007 and pay 4.375 percent interest. By August 1, 2002, the notes were trading at a premium price of 104 % with a yield of 3.37 percent.

If the yield fell 30 basis points