On Sat, 10 Apr 2004 09:10:24 -0400, "Edison Stewart"
<edison.stewart[at]sympatico.ca> wrote:

- quote -

Enter Quantity 5000; Price 100 (=100%)


--ron

Thanks for the input. Here are two revised FAQs from the offline
database--I'm not sure when they'll get posted.
---
Q): How come my bond fund investment is off by a factor of 100?

A): Bond funds are not bonds. They are mutual funds. Bonds in real life and
in Money are priced as a percentage of total face (par) value, as they are
in quotes from brokers. The price of a bond bought at a 10% discount from
face value would be 90.0. Prices over 100 would be bonds bought at a
premium. Mutual funds, like bond funds, are priced in Money by the price per
share. (Thanks to Cal Learner -- MVP for an important rewrite to this
question.) See also"I bought a $1,000 bonds for $850--Money tells me it cost
$85. What gives?" for the corollary question about the pricing of real bond
investments.

Q): I bought a $1,000 bond for $850--Money tells me it cost $85. What gives?

A): Bonds are not priced by the amount of the bond. They are priced as a
percentage of total face (par) value, as they are in quotes from brokers.
The price of a bond bought at a 10% discount from face value would be 90.0.
Prices over 100 would be bonds bought at a premium. A bond, of any value,
bought for a price of 88.5 was "bought at a discount" and cost 88.5% of its
face value. A bond bought at a price of 105 was "bought at a premium" and
cost 105% of its face value.

There is a reference in the MSKB that describes this correctly except that
the sentence that starts "If the current value of the bond exceeds the par
value ..." is wrong. The example that follows that sentence is correct.

The Bond Market Association has a really good site explaining bond
investing. Clicking glossary in the left hand column, then looking up
"price" gives a good description of how this works as well.

Thanks for this answer provided go to Cal Learner -- MVP.

See also"How come my bond fund investment is off by a factor of 100?" for
the corollary question about the pricing of bond mutual fund investments.

References:
MSKB: 121903 How bond investments are priced in Money
<http://support.microsoft.com/default...roduct=mnyBond Market Association's page on bond investing
<http://www.investinginbonds.com/
"Cal Learner-- MVP" <via_newsgroup[at]please.tnx> wrote in message
news:fd1g70ltuuq7738klv0aje2m3upl0i5rbd[at]4ax.com...
- quote -

- quote -


These 500 bonds you bought. What is the face value showing on the bonds? Was
the face value $10 or some other amount? Steve

In microsoft.public.money, Dick Watson wrote:

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100 - 100%

http://www.rbchk.com/fi_guide.asp#a4 states "The market price of a
bond is quoted as a percentage of its face value e.g 87.538, or
87.538% of its face value. When a bond is priced at 100, it is said
to be priced at par. When bonds are priced at less than par, they
are said to be priced at a discount; when bonds are priced at
greater than par, they are said to be priced at a premium."


http://support.microsoft.com/default...03&Product=mny
is good except that the sentence that starts "If the current value
of the bond exceeds the par value ..." is wrong. The example that
follows that sentence is correct.

As in most cases in Money, you are better off to enter the other
data and let Money compute the price.

http://umpmfaq.info/faqdb.php?q=122 could be revise to say something
like "Bonds are priced as a percentage of total face (par) value, as
they are in quotes from brokers. The price of a bond bought at a 10%
discount from face value would be 90.0. Prices over 100 would be
bonds bought at a premium."


http://groups.google.com/groups?as_q...04&safe=images
will give some good wording.

http://www.investinginbonds.com/ is a really good site. In the left
hand column, clicking glossary and then looking up "price" gives a
good description.

In microsoft.public.money, Edison Stewart wrote:

- quote -

Tell Money that the Quantity is 5000; Money uses the Quantity field
for the total face value for a bond.

Tell Money the price is 100. That will be 100% of face/par value.

http://support.microsoft.com/default...55&Product=mny
http://support.microsoft.com/default...03&Product=mny

The opposite answer applies to real bonds.

Tell Money they cost 1 = 100 percent.

"Edison Stewart" <edison.stewart[at]sympatico.ca> wrote in message
news:ukSdc.43031$wq4.2507021[at]news20.bellglobal.com...
- quote -

Ordinary, run of the mill, garden variety bonds. Bought 500 of them. $10
each. Paid 500x10=$5000. But in order to have Money take $5,000 out of my
cash account, I have to tell Money I have 50000.


"Ron Rosenfeld" <ronrosenfeld[at]nospam.org> wrote in message
news:h9mf7017vet86082sb2s5ek4dvjt3gl088[at]4ax.com...
- quote -

Thanks, but the FAQ refers to bond funds, not bonds. I am afraid I still do
not understand why I have to tell Money I have "50000" bonds when in fact I
have 500.

"Glyn Simpson, MVP" <glyn[at]serf.org> wrote in message
news:u7EASzuHEHA.2712[at]TK2MSFTNGP10.phx.gbl...
- quote -

On Sat, 10 Apr 2004 05:33:23 -0400, "Edison Stewart"
<edison.stewart[at]sympatico.ca> wrote:

- quote -

Yes there is. But you will need to supply more details.

What kind of bonds are these?

Ordinary bonds should be entered as such with the price a percentage of face
value. Face value, though is generally $1,000.

If these are savings bonds or some other instrument, then they should be
entered as CD/US Savings Bond , and not as Bonds.

If these are a shares of a bond mutual fund, then they should be entered as a
Mutual Fund.


--ron

See http://umpmfaq.info/faqdb.php?q=122

--
Glyn Simpson, Microsoft MVP - Money

Check http://support.microsoft.com/default...d=fh;EN-GB;mny
for UK tips and fixes for MS Money. To send Microsoft your wishes or
suggestions, use http://register.microsoft.com/mswish/suggestion.asp
or email mnyukwsh[at]microsoft.com especially if it's a UK specific wish.

I do not respond to any unsolicited email regarding Money

"Edison Stewart" <edison.stewart[at]sympatico.ca> wrote in message
news:LaPdc.16617$BF2.1339838[at]news20.bellglobal.com...
- quote -

I have bought 500 bonds at $10 each. Money tells me this cost me $50. In
fact, it cost me $5,000. Is there some way I can enter accurate info (ie.,
the correct number of bonds, and the correct price), and get the correct
answer?