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Trading bonds

J

jensen

Member
Hi

Does anyone know if bonds are infinitely divisible assets, or are they traded in multiples of its face value?
 
Good point Jensen!

In the CT8 exam, unless you're told otherwise, I would assume that you can buy/sell bonds in any amounts, just like we assume in the other models.

In real life, I'm sure a company cannot issue half a bond say. But I imagine it is possible to buy fraction of bonds, whether directly through some kind of investment manager, or indirectly by just investing in some investment/unit trust or hedge fund. Whoever you buy them off has bought whole numbers and then sold two halves on. There must be some limitations though. eg I bet I could (if I had the inclination to investigate) name a fraction x such that it is impossible to buy x bonds in Company "WeSellBonds",

John
 
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