What’s the difference between a bond priced at $100 and the same bond having a $1000 par value?

How do you calculate bond price?

Bond Price = C* (1-(1+r)^–n/r ) + F/(1+r)ⁿ

1. F = Face / Par value of bond,
2. r = Yield to maturity (YTM) and.
3. n = No. of periods till maturity.

How do you pick a good bond?

Here are 10 tips to consider before you invest in bonds or bond funds:

1. Don’t reach for yield. …
2. Define your objectives. …
3. Assess your risk profile. …
4. Do your homework. …
5. If you’re considering buying a bond fund, read the prospectus closely. …
6. If you’re buying individual bonds, locate a firm and broker specializing in bonds.