Treasury Bills On Vanguard

[Vincenzo Corleone]

Would someone kindly help me make sense of this. I was in the process of using Vanguard's bond ladder tool. The attached photo is a snippet of one of the bonds in the ladder.

The quantity in the example provided is 6, and the price is 99.410156. How are the principal and "net money" amounts calculated? It looks to me the quantity is not 6 but 60. I'm clearly not getting how this works.

Thanks.

[jazz4cash]

Its the shorthand (for lack of a better term) of bond pricing. A price of 100 is actually $1000 per bond. The price here for 6 bonds is 6x $999.xxx=$5964.xxx. The buyer pays the accrued interest to the seller when the bond is purchased (.12 for all 6 bonds in this case) and receives the next coupon payment in full. Buyer has to pay $5964.xxx + .12 in this case. Make sense?

[Vincenzo Corleone]

Quote:

Originally Posted by jazz4cash Its the shorthand (for lack of a better term) of bond pricing. A price of 100 is actually $1000 per bond. The price here for 6 bonds is 6x $999.xxx=$5964.xxx. The buyer pays the accrued interest to the seller when the bond is purchased (.12 for all 6 bonds in this case) and receives the next coupon payment in full. Buyer has to pay $5964.xxx + .12 in this case. Make sense?

Yes! Thank you.

[Sunset]

I find bond pricing weird.
I did buy a bond one time, wasn't sure until I clicked purchase that it was $10k or $100K
Didn't buy anymore as too weird..

[OldShooter]

Quote:

Originally Posted by Sunset I find bond pricing weird. I did buy a bond one time, wasn't sure until I clicked purchase that it was $10k or $100K Didn't buy anymore as too weird..

No need to be afraid. Next time just call the bond desk and they will teach you what you need to know.