Bond's price expressed as a % of par

External question — Quantitative Finance Stack Exchange Author: F0l0w Original post: https://quant.stackexchange.com/questions/61804 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. the following is causing a bit of confusion... In some countries, e.g. Brazil, I saw the bonds are quoted in "Unitary prices" (PU). If we pick an example where: Unitary price = 10,400 (Market price) Par value = 1,000 What is the math behind to convert the market price to a "% of par price"? I saw Anbima, the main brazilian exchange, quotes price as 10,400; while some brokers as say 1,040 (which would be the price as "% of par"). Is it accurate to say the below? Price as % of par = (Traded price / Par value) * 100

External answer — Quantitative Finance Stack Exchange Author: Dimitri Vulis Original post: https://quant.stackexchange.com/a/61808 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Bond price quoting conventions differ in different countries... In the vast majority of markets, they are quoted as percentage of par. But there are a few exceptions. If you're looking at Brazil LTN's (BLTN on Bloomberg) or NTN-F's, for example, 1,000 is the par price, so 950 quote means 95% of par. If you're looking at Mexican cete's (MCET on Bloomberg), 10 is the par price, so 9.5 quote means 95% of par. On Bloomberg, there is a yes/no field saying whether this bond is quoted as percentage of par. If it is false, then another field contains the par value used for quotes. Also, in Brazil, coupon bond prices are quoted dirty (with accrued), not clean (without accrued), like in most markets. But, as they say in TV infomercials, that's not all! If you're looking at inflation-linked Brazil bonds like NTN-B's or (rarely seen these days) NTN-C's, then the P.U. also includes the inflation index adjustment. (Israeli inflation-linked bonds are also quoted this way - I'm not sure if all or some.)