Why are bond indexes difficult to calculate?

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Why would stock prices be easier to calculate than bond prices, making it stock indexes easier to determine than bond indexes? I read that it has to do with the infrequency at which the bonds trade which makes up-to-date prices difficult to obtain, but I dont get the intuition behind this very well.

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3 Answers

Anonymous 0 Comments

It’s not difficult to calculate.

But, unlike stock, bonds have different return regarding to its maturity (or term structure) of which is not applicable to be grouped together to represent in a single index.

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