Microsoft KB Archive/121903

= Money: How Money Determines the Price of a Bond =

Article ID: 121903

Article Last Modified on 1/19/2007

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APPLIES TO


 * Microsoft Money 2004 Deluxe Edition
 * Microsoft Money 2003 Deluxe Edition
 * Microsoft Money 2002 Deluxe Edition
 * Microsoft Money 2001 Standard Edition
 * Microsoft Money 2000 Standard Edition
 * Microsoft Money 99 Standard Edition
 * Microsoft Money 98 Standard Edition
 * Microsoft Money 97 Standard Edition
 * Microsoft Money 2000 Business & Personal Edition
 * Microsoft Money 98 Deluxe Edition
 * Microsoft Money 98 Financial Suite Edition

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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.

