Business and Personal Finance Dictionary

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• BID PRICE
  
  An offer to buy at a fixed price or yield. The price, expressed as a percentage of par, which the underwriters pay the issuer on the delivery date for a new issue of bonds. The bid price is equal to the par amount of bonds plus any premium, less any original issue discount, less underwriter's discount --- all divided by the par amount of bonds and multiplied by 100%. Accrued interest is not factored into the bid price.
  
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