Why do some bonds sell at a premium while others sell at a discount?
Author: Asael Becker
Website: http://www.ABC-Bonds.com
Added: Sun, Sep 24, 2006 19:58:06
Category: Bonds Questions
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It must be clear that the share price is subject to factors like supply and demand and closed-end funds that are rarely traded at their net-asset value. In other words, the share price does not necessarily equal the value of stock holdings in the fund.
It is when they are new that the closed-end funds typically trade at a premium. A few months later, it will depend on the popularity of different funds for where the discounts appear.
keywords: Bond | Bonds | Financing | Stocks | Investment About the Author:
Asael Becker answers frequently asked bonds questions at PrettyGreatAnswers.com.
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