Looking at BMO InvestorLine as an example, the CITIGROUP CDA 4.90% 13NOV12 bond is currently selling for $102.90 per $100, which gives an S/A yield of 2.032% and Annual of 2.043%.

I know the mechanics of the math in valuing the bond (e.g. the yields are the IRR based on the current price), but I'm confused on the price of the bond itself. Does the price reflect the actual market price (e.g. what seller's Ask price is), or is the price being calculated based on the yields?

Thanks,

-10d