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etagedæk
karplanter
Jul 12, 2010 15:00
13 yrs ago
Danish term

kurs

Danish to English Bus/Financial Finance (general)
fx:
"kursen på den 30-årige 4 % obligation med afdrag omkring kurs 97, mens den afdragsfrie version ligger lige under 96"

in this case, "price" does not work.

Thanks!
Proposed translations (English)
3 +1 price
3 quote
4 -1 rate
3 -1 yield
References
Price in relation to bonds

Discussion

Christopher Schröder Jul 14, 2010:
Re Brian's comment Your quote is looking at it the wrong way around - interest is the price the *issuer* pays to investors for borrowing their money. The kurs is the price the *investor* pays for the right to get the interest from the issuer.
Michael Burgess (asker) Jul 14, 2010:
although rate would be the correct translation in some contexts (i.e. currency exchange), the correct answer in this context (bonds) appears to be price.

The most definitive source for this I found was: http://personal.fidelity.com/products/fixedincome/price.shtm...
Brian Young Jul 14, 2010:
The relationship between rate (interest) and price Classical economy theory justified the charging of interest by calling it the "price of capital". So a rate or interest percentage is applied to capital, and that gives the price you have to pay to get it. That there have been almost no limits on rates, (other than mystical "market" effects), and that rates are always compounded, was a detail not taken seriously at the time.
Michael Burgess (asker) Jul 12, 2010:
Thanks so much to all of you on a sunny (and hot!) summer Monday. :-)
Diarmuid Kennan Jul 12, 2010:
On mature reflection ... I can see that Chris and Mette are right.
Mette Melchior Jul 12, 2010:
Price vs. yield Yes, exactly. This was just was I writing in response do Diarmuid's suggestion.
meirs Jul 12, 2010:
"kurs" vs. Yield "kurs" (DE too) is how much you pay now (less than 100% = points) to get its face value (100%) when it matures
Yield is the interest rate you get when it matures on top of the face value (100%) you pay now
Michael Burgess (asker) Jul 12, 2010:
http://personal.fidelity.com/products/fixedincome/price.shtm...
Michael Burgess (asker) Jul 12, 2010:
Actually, price might work. I just found this website that seems to indicate "price" is the right term...

Proposed translations

+1
15 mins
Selected

price

I can't see what else it can be
Peer comment(s):
agree Mette Melchior
1 min
agree Helle B
22 hrs
disagree Brian Young : price is expressed as an amount of currency, "kurs" is usually expressed as a percentage or rate, as "valuta kursen", which can give a price, by multiplying the quantity desired by the applicable rate.
1 day 9 mins
Actually bond prices are quoted as a percentage of face value, not in currency, which is why they are normally between 90 and 110. Rate in the context of bonds suggests interest (coupon or yield), which is what you get, kurs is what you pay. Trust me :-)
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4 KudoZ points awarded for this answer. Comment: "Thanks!"
-1
1 min

yield

.
Peer comment(s):
disagree Mette Melchior : The yield is the return on the investment which the investor receives, not the price that is paid for it.
17 mins
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5 mins

quote

Shares are quoted, bonds have yields but this is not the yield
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-1
1 hr

rate

It is a commonly used term in these matters. Adjustable rates, fixed rates, average rates, the going rate, today's rate.

--------------------------------------------------
Note added at 1 day28 mins (2010-07-13 15:28:40 GMT)
--------------------------------------------------

Rate IS also a price to pay, and is not restricted to interest received. You pay interest on a loan according to a fixed or variable rate of interest. Rate is turned into price by applying the rate to the amount involved. Price is a function of rate.
Peer comment(s):
disagree Christopher Schröder : Rate is the interest you receive, kurs is the price you pay :-)
15 hrs
neutral Christine Andersen : Rate is also a price as Brian suggests. I thought of it myself, but was not sure of it in this context, especially after the comments above.
16 hrs
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Reference comments

18 mins
Reference:

Price in relation to bonds

See also this link which explains the pricing of bonds.
Reference:

http://www.investopedia.com/university/bonds/bonds5.asp

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