10. Bond pricing A Aa Understanding Bond Pricing Suppose your friend tells you that she recently purchased a 10-year $4,000.00 bond with a 5 % coupon. A month later, she saw it quoted at 99.625, but she does not know what this means. bond; otherwise it would have meaning it is You can tell by the way the bond is priced that she has a been priced . You explain that the market price of her bond is now bond. now a Based on the market price of the bond you calculated, you can tell that market interest rates have gone since the bond was issued. The current yield of the bond is now 10. Bond pricing A Aa Understanding Bond Pricing Suppose your friend tells you that she recently purchased a 10-year $4,000.00 bond with a 5 % coupon. A month later, she saw it quoted at 99.625, but she does not know what this means. bond; otherwise it would have meaning it is You can tell by the way the bond is priced that she has a been priced . You explain that the market price of her bond is now bond. now a Based on the market price of the bond you calculated, you can tell that market interest rates have gone since the bond was issued. The current yield of the bond is now