Under the condition of market economy, national debt not only has the basic functions of making up the fiscal deficit and raising construction funds, but also has the following important functions:

1. Form the market benchmark interest rate:

Interest rate is the core price of the whole financial market, which has an important impact on the pricing of financial instruments in the stock market, futures market, foreign exchange market and other markets. National debt is an investment tool with stable income and extremely low risk, which makes the interest rate of national debt at the core of the whole interest rate system and becomes the basis for pricing other financial instruments. The issuance and trading of national debt helps to form the market benchmark interest rate. The issuance of national debt will affect the supply and demand of funds in the financial market, thus causing the rise and fall of interest rates. Under the condition that the national debt market is fully developed, the coupon rate when the national debt is issued for a certain period represents the expected level of the market interest rate at that time, and the change of the transaction price of national debt in the secondary market can reflect the change of the market's expectation of future interest rate in time.

2 as a combination of fiscal policy and monetary policy:

First of all, expanding the scale of national debt issuance is the main means for the state to implement a proactive fiscal policy. 1August, 1998, 270 billion yuan of special national debt was issued to ensure the economic growth rate of 8%, which is a good example.

Secondly, national debt, especially short-term national debt, is the only suitable tool for the central bank to operate in the open market. The total amount and structure of national debt have an important influence on the effect of open market operation. If the scale of national debt is too small, the central bank's ability to control the money supply in the open market is very limited, which is not enough to make the change of interest rate level meet the requirements of the central bank; If the variety of national debt is single, the holder structure is unreasonable, and the proportion of national debt held by small and medium-sized investors is too large, it will be difficult to operate the open market.

3. As a short-term financing tool for institutional investors:

The credit risk of national debt is extremely low, and institutional investors can use national debt, the standardized securities with the highest credibility, to repurchase transactions, so as to adjust the short-term capital surplus and deficiency, hedge and strengthen asset management.

Second, the variety structure of China's national debt

Since 198 1, there are many kinds of national debt issued in China. According to different classification standards, it can be divided into the following categories:

1. According to liquidity, it can be divided into:

(1) Transferable national debt: including book-entry national debt and bearer bonds.

Book-entry treasury bonds refer to the delivery and settlement of treasury bonds by book-entry rather than physical vouchers, and the principal and interest are paid by vouchers that can prove the holding of treasury bonds.

Bond bearer is a kind of physical national debt, which records the creditor's rights in the form of physical bonds, is bearer, does not report the loss and can be listed and traded. The face values of bearer bonds issued over the years are 1, 5, 10, 20, 50, 100, 500, 1000 and 5000 respectively.

(2) Non-negotiable treasury bonds: including voucher-type treasury bonds and special directional bond-type treasury bonds, which are used as creditor's rights certificates in the form of treasury receipts and cannot be listed, circulated and transferred, but can be paid in advance. When paying in advance, interest shall be paid according to the actual holding time.

Special directional bond is a kind of national debt issued by financial institutions such as employees' pension and unemployment insurance management institutions and banks, which has little to do with individual investors, such as the 270 billion yuan special national debt issued to state-owned banks in August of 1998.

2. According to coupon rate, it can be divided into fixed-rate treasury bonds and floating-rate treasury bonds.

The coupon rate of fixed-rate treasury bonds was determined at the time of issuance, and remained unchanged during the duration of the treasury bonds, which was generally about 1 percentage point higher than the bank deposit rate of the same period. For example, the 200 1 year book-entry (three-phase) national debt (0 10 103) listed on May 65, 438+00 has an annual interest rate of 3.27%.

The coupon rate of floating-rate treasury bonds fluctuates with the change of market interest rate, and the interest rate is determined by the market interest rate of the same term plus the fixed spread on the value date of the interest payment period. For example, in 2000, the fixed spread between book-entry (four-phase) treasury bonds (0 10004) and the one-year savings deposit rate of banks was 0.62%, and the interest rate of treasury bonds in the first year was 2.87%.

3. According to the interest payment method, it can be divided into zero-interest national debt and interest-bearing national debt.

Zero-coupon treasury bonds do not pay interest during their duration, but repay the principal and interest at maturity. China's national debt issued before 1996 falls into this category.

Interest-bearing debt interest generally pays annually, repays the principal at maturity and pays the last interest. China first issued ten-year interest-bearing government bonds (000696) on June 1996.

Third, the types of national debt transactions.

In the development of China's national debt market, national debt transactions can be divided into cash bonds, repurchase bonds and futures bonds.

Spot trading of national debt is a form of spot barter trading. The two parties to the transaction quote the listed and circulated national debt through the trading system of the stock exchange, and the trading system matches the transaction. Once the transaction is completed, the securities will be delivered and transferred. It is basically consistent with the stock trading process and is the most basic form of national debt trading.

Treasury bond repurchase transaction refers to a transaction in which a treasury bond trader or investor, while selling a certain period of treasury bonds, agrees in the form of a treasury bond repurchase agreement to buy back the same amount of treasury bonds at a certain price in the future. Its essence is that the seller of national debt borrows money from the buyer with national debt as collateral, and the difference between the price paid when repurchasing national debt and the price obtained when selling national debt is the interest of the borrowed item. In the repurchase transaction of government bonds, the party that initially sells government bonds is the repurchase party, and the other party that buys government bonds is the resale party.

Treasury bond futures trading is a derivative trading form of treasury bonds, which is based on standardized treasury bond futures trading contracts. Buyers and sellers agree to settle bonds at an agreed price and quantity on a specific trading day in the future through exchanges.

Four, the transaction cost of national debt transactions

The transaction costs of cash bonds, repurchase and subscription of new bonds are as follows (all bond transactions are exempt from stamp duty):

Transaction costs for subscription of new government bonds: investors are exempt from handling fees for subscription of new government bonds.

Transaction cost of spot trading of treasury bonds: the starting point of commission is 5 yuan, and it shall not exceed 0. 1% of the transaction amount.

Five, the compilation method of the trading code of listed government bonds

At present, there are eight kinds of national debt listed in the national debt market of Shenzhen Stock Exchange, and the compilation method of their trading codes is as follows:

19+ issue year number (1 bit)+number of issues of national debt in the current year (1 bit).

Such as 1999 book-entry (eight-phase) treasury bonds, with the transaction code of1998; Book-entry (four issues) treasury bonds in 2000, with the transaction code of 1904.

There are five types of national debt listed in the national debt market of Shanghai Stock Exchange, and the trading codes are compiled as follows:

There are two treasury bonds issued by 1996 and listed on the Shanghai Stock Exchange, namely 1996 book-entry treasury bonds (five issues) (transaction code: 000696) and 1996 book-entry treasury bonds (six issues) (transaction code: 000896).

Treasury bonds are issued in 1997- 1999, and the transaction code is:

00+ year of issue (2 digits)+number of bonds issued (2 digits)

Such as 1999 book-entry (five-phase) treasury bonds, with the transaction code of 009905.

The trading code of national debt issued after 2000 is:

0 1+ issue year number (2 digits)+issue period number of national debt (2 digits)

For example, the book-entry (four-phase) national debt in 2000, its transaction code is 010004; 200 1 year book-entry (three-phase) treasury bonds with the transaction code of 0 10 103.

Determination of the value of national debt by intransitive verb

National debt, like other bonds, belongs to fixed-income securities, which can bring its holders a fixed cash flow in a certain period of time in the future. Therefore, the theoretical value of national debt is determined by the total present value of discounted cash flow method in the future. By calculating the theoretical value of national debt, we can find out those national debt whose value is overvalued or undervalued in the market, so as to make corresponding buying and selling decisions.

Because the bonds traded in the current bond trading market are all interest-bearing bonds, the calculation formula of their theoretical value is:

v=c 1/( 1+i)+c2/( 1+i)^2+…+cn/( 1+i)^n+mn/( 1+i)^n

Among them, V is the theoretical value of national debt; C 1, C2, …, Cn is 1, 2, …, n debt interest income; Mn is the maturity value of national debt, that is, the face value of national debt; I is the discount rate.

For coupon rate's fixed national debt, the interest income of each period is equal, that is, C 1=C2=…Cn, so the calculation formula of its theoretical value can be simplified as:

v=c/( 1+i)+c/( 1+i)^2+…+c/( 1+i)^n+mn/( 1+i)^n

For example, in 2000, the book-entry (four-phase) national debt (0 10004) floated in coupon rate, and the fixed spread with the one-year deposit rate of the bank was 0.62%. It was issued on May 23rd, 2000, and the interest period is 10 year. Assuming that the annual discount rate is 10% and the current one-year bank deposit interest rate is 2.25%, assuming that the one-year bank deposit interest rate increases by 1% every year, the theoretical value of the national debt on May 23, 2006 should be:

v=2.87/( 1+0. 1)+3.87/( 1+0. 1)^2+4.87/( 1+0. 1)^3+5.87/( 1+0. 1)^4

+6.87/( 1+0. 1)^5+7.87/( 1+0. 1)^6+8.87/( 1+0. 1)^7+9.87/( 1+0. 1)^8

+ 10.87/( 1+0. 1)^9+ 100/( 1+0. 1)^9

=80.08 yuan

696 national debt (000696), coupon rate 1 1.83%, term 10 year, with interest paid on June 14 every year. Assuming that the annual discount rate is 10%, the theoretical value of the national debt on June 14, 2000 should be:

v= 1 1.83/( 1+0. 1)+ 1 1.83/( 1+0. 1)^2+ 1 1.83/( 1+0. 1)^3+ 1 1.83/( 1+0. 1)^4

+ 1 1.83/( 1+0. 1)^5+ 1 1.83/( 1+0. 1)^6+ 100/( 1+0. 1)^6

= 107.97 (yuan)

Seven, the determination of the yield of national debt

When the value or price of the national debt is known, the yield index of the national debt can be calculated according to the remaining maturity and interest payment of the national debt, thus guiding the investment decision. For investors, the more important yield indicators are as follows:

1. Direct rate of return:

The calculation of direct rate of return is straightforward, and the annual interest can be divided by the market price of national debt, that is, i=C/P0.

2. yield to maturity:

Yield to maturity refers to the rate of return that can make the sum of the present value of future cash flows of national debt equal to the current market price. Yield to maturity is one of the most important yield indicators. The calculation of national debt yield to maturity has the following important assumptions: (1) holding national debt to maturity; (2) Interest income is used for reinvestment, and the return on investment is equal to yield to maturity.

Yield to maturity's calculation formula is:

v=c 1/( 1+i)+c2/( 1+i)^2+…+cn/( 1+i)^n+mn/( 1+i)^n

Yield to maturity's calculation is complicated and can be obtained by using computer software or yield to maturity's bond table with different prices, interest rates and repayment periods. Without the above tools, yield to maturity can only be obtained by interpolation.

For example, the market price of14,2000696 national debt is 142. 15 yuan, and the unpaid period is 6 years, then yield to maturity can be calculated as follows:

142. 15= 1 1.83/( 1+i)+ 1 1.83/( 1+i)^2+ 1 1.83/( 1+i)^3+ 1 1.83/( 1+i)^4

+ 1 1.83/( 1+i)^5+ 1 1.83/( 1+i)^6+ 100/( 1+i)^6( 1)

By interpolation, assuming I = 4%, the right side of (1) is:

v 1= 1 1.83/( 1+0.04)+ 1 1.83/( 1+0.04)^2+ 1 1.83/( 1+0.04)^3+ 1 1 .83/( 1+0.04)^4+ 1 1.83/( 1+0.04)^5+ 1 1.83/( 1+0.04)^6+ 100/( 1+0.04)^6= 14 1.05<； 142. 15

Explain that yield to maturity is less than 4%, and then assume that i=3%, then the right side of (1) is:

v2= 1 1.83/( 1+0.03)+ 1 1.83/( 1+0.03)^2+ 1 1.83/( 1+0.03)^3+ 1 1.83/( / kloc-0/+0.03)^4+ 1 1.83/( 1+0.03)^5+ 1 1.83/( 1+0.03)^6+ 100/( 1+0.03)^6= 147.83>； 142. 15

Explain that yield to maturity is between 3% and 4%, and yield to maturity can be obtained by interpolation:

(4%-I)/(4%-3%)=( 14 1.05- 142. 15)/( 14 1.05- 147.83)

I=3.84% can be found.

3. Holding period yield:

Investors are usually more concerned about the yield of holding government bonds within a certain period of time, that is, the yield of holding period.

The calculation formula of holding period yield is: i=(P2-P 1+I)/P 1.

Among them, P 1 is the price for investors to buy government bonds, P2 is the price for investors to sell government bonds, and I is the interest income of investors during their holding period.

For example, on May 22, 2000, an investor bought 696 national debt (000696) at a price of 154.25 yuan, and held it for one year before selling it at a price of 148.65 yuan on May 22, 2006. During the holding period, debt interest will pay in one lump sum (1 1).

I =( 148.65- 154.25+ 1 1.83)/ 154.25 = 4.04%

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.