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Relationship between bond prices and interest rates | Finance & Capital Markets | Khan Academy
 
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Why bond prices move inversely to changes in interest rate. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/treasury-bond-prices-and-yields?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-the-yield-curve?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 565162 Khan Academy
Bonds: Spot Rates vs. Yield to Maturity
 
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What's the difference between a spot rate and a bond's yield-to-maturity? In this video you'll learn how to find the price of the bond using spot rates, as well as how to find the yield-to-maturity of a bond once we know it's price. Simply put, spot rates are used to discount cash flows happening at a particular point in time, back to time 0. A bond's yield-to-maturity is the overall return that the investor will make by purchasing the bond - think of it as a weighted average!
Views: 9393 Arnold Tutoring
Bonds | Confused between the rates: Spot, Forward, Coupon, Current Yield, IRR, YTM, BEY
 
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CFA | FRM | SFM | Excel Live Classes | Videos Available Globally For Details: www.aswinibajaj.com WhatsApp: +91 9831149876 or https://api.whatsapp.com/send?phone=919830497377&text=Want%20to%20know%20more%20about%20classes & we shall get back to you. E-mail: [email protected] Hope you had a great learning experience! Do Like and Subscribe! And check our other videos on Finance (CFA, FRM, SFM), Resume making, Career options, etc. Click to access playlist. https://www.youtube.com/channel/UCyt8... Thank you.
Views: 18036 ASWINI BAJAJ
Face value, Coupon and Maturity of Bonds - SmarterWithMoney
 
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Investing in bonds can be tricky in today's market. Understanding the fundamental concepts associated with bonds is a good place to start.
Views: 26300 Religare
Bonds: Spot Rates from Forward Rates
 
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Learn the difference between a forward rate and a spot rate, and how to determine spot rates from forward rates by setting up equivalent expressions. Then you can use those spot rates to calculate the price of a coupon-paying bond.
Views: 11386 Arnold Tutoring
Bonds & Bond Valuation | Introduction to Corporate Finance | CPA Exam BEC | CMA Exam | Chp 7 p 1
 
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When a corporation or government wishes to borrow money from the public on a long-term basis, it usually does so by issuing or selling debt securities that are generically called bonds. In this section, we describe the various features of corporate bonds and some of the terminology associated with bonds. We then discuss the cash flows associated with a bond and how bonds can be valued using our discounted cash flow procedure. BOND FEATURES AND PRICES As we mentioned in our previous chapter, a bond is normally an interest-only loan, meaning that the borrower will pay the interest every period, but none of the principal will be repaid until the end of the loan. For example, suppose the Beck Corporation wants to borrow $1,000 for 30 years. The interest rate on similar debt issued by similar corporations is 12 percent. Beck will thus pay .12 × $1,000 = $120 in interest every year for 30 years. At the end of 30 years, Beck will repay the $1,000. As this example suggests, a bond is a fairly simple financing arrangement. There is, however, a rich jargon associated with bonds, so we will use this example to define some of the more important terms. In our example, the $120 regular interest payments that Beck promises to make are called the bond’s coupons. Because the coupon is constant and paid every year, the type of bond we are describing is sometimes called a level coupon bond. The amount that will be repaid at the end of the loan is called the bond’s face value, or par value. As in our example, this par value is usually $1,000 for corporate bonds, and a bond that sells for its par value is called a par value bond. Government bonds frequently have much larger face, or par, values. Finally, the annual coupon divided by the face value is called the coupon rate on the bond; in this case, because $120/1,000 = 12%, the bond has a 12 percent coupon rate. The number of years until the face value is paid is called the bond’s time to maturity. A corporate bond will frequently have a maturity of 30 years when it is originally issued, but this varies. Once the bond has been issued, the number of years to maturity declines as time goes by. BOND VALUES AND YIELDS As time passes, interest rates change in the marketplace. The cash flows from a bond, however, stay the same. As a result, the value of the bond will fluctuate. When interest rates rise, the present value of the bond’s remaining cash flows declines, and the bond is worth less. When interest rates fall, the bond is worth more. To determine the value of a bond at a particular point in time, we need to know the number of periods remaining until maturity, the face value, the coupon, and the market interest rate for bonds with similar features. This interest rate required in the market on a bond is called the bond’s yield to maturity (YTM). This rate is sometimes called the bond’s yield for short. Given all this information, we can calculate the present value of the cash flows as an estimate of the bond’s current market value.
Introduction to bonds | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
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What it means to buy a bond. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-the-yield-curve?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/corporate-debt-versus-traditional-mortgages?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 549731 Khan Academy
Session 07: Objective 1 - Bonds and Bond Valuation
 
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The Finance Coach: Introduction to Corporate Finance with Greg Pierce Textbook: Fundamentals of Corporate Finance Ross, Westerfield, Jordan Chapter 7: Interest Rates and Bond Valuation Objective 1 - Key Objective: Bonds Bond Cycle Inverse relationship between bond value and interest rate Face Value vs. Discount vs. Premium Bond To minimize interest rate risk purchase a bond with 1) shorter time to maturity 2) higher coupon rate Semiannual vs. Annual Coupons Bond Value Formula Coupon (C) Time to Maturity (t) Yield to Maturity (r) Face value paid at maturity (FV) Fisher Effect (Exact vs. Approximate) Nominal Rate (R) Real Rate (r) Inflation Rate (h) More Information at: http://thefincoach.com/
Views: 36684 TheFinCoach
Introduction to the yield curve | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
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Introduction to the treasury yield curve. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/relationship-between-bond-prices-and-interest-rates?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-bonds?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 376967 Khan Academy
Treasury bond prices and yields | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
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Why yields go down when prices go up. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/annual-interest-varying-with-debt-maturity?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/relationship-between-bond-prices-and-interest-rates?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 255212 Khan Academy
Bonds and Bond Yields
 
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Bonds and Bond Yields. A video covering Bonds and Bond Yields Instagram @econplusdal Twitter: https://twitter.com/econplusdal Facebook: https://www.facebook.com/EconplusDal-1651992015061685/?ref=aymt_homepage_panel
Views: 34843 EconplusDal
The yield curve | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
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Annual Interest Varying with Debt Maturity. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/corp-bankruptcy-tutorial/v/chapter-7-bankruptcy-liquidation?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/annual-interest-varying-with-debt-maturity?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 146544 Khan Academy
Betting on Long Term Interest Rates: Bonds
 
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Spread betting on bonds http://www.financial-spread-betting.com/Spread-bet-bonds.html Betting on long term interest rates. When spread betting you can usually bet on short term interest rates or long term interest rates which relate to government bond issues. Government bonds are fixed interest securities.
Views: 446 UKspreadbetting
How rising interest rates may impact bonds
 
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Pacer ETFs President Sean O’Hara discusses how rising interest rates are impacting bonds and where investors should allocate their capital.
Views: 1320 Fox Business
How Will Higher Interest Rates Affect High Yield Bonds?
 
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May 28 -- Franklin Templeton Fixed Income Group Senior Vice President Eric Takaha discusses the bond markets. He speaks on “Market Makers.” -- Subscribe to Bloomberg on YouTube: http://www.youtube.com/Bloomberg Bloomberg Television offers extensive coverage and analysis of international business news and stories of global importance. It is available in more than 310 million households worldwide and reaches the most affluent and influential viewers in terms of household income, asset value and education levels. With production hubs in London, New York and Hong Kong, the network provides 24-hour continuous coverage of the people, companies and ideas that move the markets.
Views: 4336 Bloomberg
Valuation 101: How Interest Rates Impact Bonds
 
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And how do fundamentals like inflation and interest rates factor into the investment value equation? In investing, as in so many other arenas, the questions with the most complex answers tend to start with one word — “why.” In this month's Motley Fool Answers mailbag comes a particularly good “why question" from a listener who’s curious about why we gauge the values of companies and assets with the metrics we do, and why different industries and businesses seem to be held to such different standards. To answer, special guest Buck Hartzell, director of Investor Learning and Operations at The Motley Fool, joins hosts Alison Southwick and Robert Brokamp. In this segment, he talks about the relative merits of different industries, and the inescapable relationships between inflation rates, interest rates, and risk and reward in investing. ------------------------------------------------------------------------ Subscribe to The Motley Fool's YouTube Channel: http://www.youtube.com/TheMotleyFool Or, follow our Google+ page: https://plus.google.com/+MotleyFool/posts Inside The Motley Fool: Check out our Culture Blog! http://culture.fool.com Join our Facebook community: https://www.facebook.com/themotleyfool Follow The Motley Fool on Twitter: https://twitter.com/themotleyfool
Views: 386 The Motley Fool
Session 07: Objective 1 - Bonds and Bond Valuation (2016)
 
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The Finance Coach: Introduction to Corporate Finance with Greg Pierce Textbook: Fundamentals of Corporate Finance Ross, Westerfield, Jordan Chapter 7: Interest Rates and Bond Valuation Objective 1 - Key Objective: Bonds Bond Cycle Inverse relationship between bond value and interest rate Face Value vs. Discount vs. Premium Bond To minimize interest rate risk purchase a bond with 1) shorter time to maturity 2) higher coupon rate Semiannual vs. Annual Coupons Bond Value Formula Coupon (C) Time to Maturity (t) Yield to Maturity (r) Face value paid at maturity (FV) Fisher Effect (Exact vs. Approximate) Nominal Rate (R) Real Rate (r) Inflation Rate (h) More Information at: http://thefincoach.com/
Views: 3864 TheFinCoach
Bonds, Interest Rates, and the Impact of Inflation
 
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This educational video discusses the basics of bonds. People interested in investing should speak with their financial advisor. The video was produced by Mark Matos, a financial advisor in Naples FL. Blog: http://www.globalwealthconsultants.com/Blog.aspx Follow me on: Facebook: https://www.facebook.com/mark.matos Google+: https://plus.google.com/+MarkMatos1 Linkedin: https://www.linkedin.com/in/markamatos Twitter: https://twitter.com/MarkAMatos Music by Chris Zabriskie
Views: 5374 The Rebel Outpost
Bond Price and Bond Yields - Simplified | Money and Banking Part 3.1 | Indian Economy
 
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How to Prepare Indian Economy for UPSC CSE Prelims 2019 ? Video Link : https://youtu.be/SYuTBEMmzJ4 To Join Economy Prelims Telegram Channel - https://t.me/NEOIASECONOMYPRELIMS To Join Economy Mains Channel https://t.me/NEOIASECONOMYMAINS Economy Previous Year Questions Link : https://drive.google.com/open?id=1zmjyKUMAttVddsQ6wInX1zGBKfy-jU0q Learn complete concept of Indian Economy for CIVIL SERVICE EXAMINATION in the simplest way. NEO IAS e-learning classes is an online program which aims to create CIVIL SERVANTS for the development of the nation by providing the video series of complete topics that are relevant for the CIVIL SERVICES (IAS/IPS) Exam.
Views: 35916 NEO IAS
BONDS, BOND YIELD, INTEREST RATES,  INFLATION AND QUANTITATIVE EASING (HINDI)
 
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THIS IS THE VIDEO IN ECONOMIC DICTIONARY WHICH SHORTLY COVERS TOPICS LIKE BOND, BOND YIELD, INTEREST RATES, INFLATION, DEFLATION AND QUANTITATIVE EASING IN HINDI. DONATION LINKS PAYTM: 9179370707 BHIM: 9179370707
Views: 931 Ideal Coaching
Zero Coupon Bonds
 
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Why buy a bond that pays no interest? This video helps you understand what a zero coupon bond is and how it can be beneficial. It details when you should expect to receive a return after buying a zero coupon bond and some of its unique features. Questions or Comments? Have a question or topic you’d like to learn more about? Let us know: Twitter: @ZionsDirectTV Facebook: www.facebook.com/zionsdirect Or leave a comment on one of our videos. Open an Account: Begin investing today by opening a brokerage account or IRA at www.zionsdirect.com Bid in our Auctions: Participate in our fixed-income security auctions with no commissions or mark-ups charged by Zions Direct at www.auctions.zionsdirect.com
Views: 41323 Zions TV
Podcast #84- Bonds in a Rising Interest Rate Environment
 
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I was asked for some good strategies for investing in bonds in a rising interest rate environment. Show notes: https://www.whitecoatinvestor.com/bonds-rising-interest-rates-podcast-84/ These strategies include short term bonds, money market funds, inflation adjusted bonds, and stable value funds. Don’t extrapolate the past into the future. Interest rates may go up, down, or stay flat. Like you, I have no idea what the answer is. Neither does anybody else. Make sure you have an investing plan that is highly likely to reach your goals no matter what happens with interest rates in the short run and in the long run. I prefer a fixed asset allocation strategy. If you had a working crystal ball, stay in cash until rates are done going up, then switch to long term bonds until rates are done going down then switch again. You can hedge your bets by staying short, but there is a very real cost to doing that and we discuss that in this episode. For more thoughts on including bonds in your investment portfolio, try this post: https://www.whitecoatinvestor.com/thoughts-on-bonds-at-the-end-of-2014/ To learn more about how to allocate your assets and reach your financial goals, check out our Fire Your Financial Advisor course: https://whitecoatinvestor.teachable.com/p/fire-your-financial-advisor
How Do Interest Rates Affect Bonds?
 
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The traditional view of bonds as safe places to stash money you’ll soon need to access doesn’t square with the current rising-interest-rate environment. It is a truth universally acknowledged, that a retail investor in possession of a good fortune must be in want of a low-risk asset class in which to stash some of it, and that bonds are among the best options of that type. But -- with deepest thanks and apologies to Jane Austen -- universally acknowledged truths sometimes turn out to be false, under certain circumstances. Case in point, from deep in this month's Motley Fool Answers mailbag comes a query from a listener who was disturbed to read an article in The New York Times asserting that corporate debt is experiencing a valuation bubble, and that bond funds have become a riskier place to invest than most people recognize. Is this true, he asks, and if so, what should an investor do in response? To answer, special guest Buck Hartzell, director of Investor Learning and Operations at The Motley Fool, joins hosts Alison Southwick and Robert Brokamp in this segment. ------------------------------------------------------------------------ Subscribe to The Motley Fool's YouTube Channel: http://www.youtube.com/TheMotleyFool Or, follow our Google+ page: https://plus.google.com/+MotleyFool/posts Inside The Motley Fool: Check out our Culture Blog! http://culture.fool.com Join our Facebook community: https://www.facebook.com/themotleyfool Follow The Motley Fool on Twitter: https://twitter.com/themotleyfool
Views: 468 The Motley Fool
What Happens to My Bonds When Interest Rates Rise?
 
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With interest rate hikes and indications that there will be further increases this year, we've been receiving questions about the impact of rising interest rates on a bond portfolio. In this video, Pure Financial's Director of Research, Brian Perry, CFP®, CFA® answers the question, "what will happen to my bond portfolio when interest rates rise?" If you would like to schedule a free assessment with one of our CFP® professionals, click here: https://purefinancial.com/lp/free-assessment/ Make sure to subscribe to our channel for more helpful tips and stay tuned for the next episode of “Your Money, Your Wealth.” http://bit.ly/2FDSfK2 Channels & show times: http://yourmoneyyourwealth.com https://purefinancial.com IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, Inc. A Registered Investment Advisor. • Pure Financial Advisors Inc. does not offer tax or legal advice. Consult with their tax advisor or attorney regarding specific situations. • Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. • Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. • All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. • Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
Theoretical price of a bond using spot rates (FRM T3-9)
 
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[my xls is here https://trtl.bz/2GyTeex] The theoretical bond price is the present value if the future cash flows are discounted at the spot (aka, zero rates); in other words, it is the price given by discounted cash flow (DCF). We don't expect the traded (observed) price to exactly match because the DCF price is fundamental, yet technical factors influence price too (e.g., supply/demand, liquidity). Discuss this video here in our FRM forum: https://trtl.bz/2JJIxKG.
Views: 1345 Bionic Turtle
What rising interest rates mean for municipal bonds
 
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John Miller, Nuveen head of municipals, discusses how municipal bonds have been performing in an environment of rising rates.
Views: 850 CNBC Television
Bond Issue (Brief Description For Types Of Bonds, Interest Rates & Bond Values)
 
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Various types of bonds issued brief description of (1) types of bonds, (2) interest rates, and (3) bond values, (1) different bond types include: Term bonds, mortgage bonds, collateral trust bonds, debenture bonds, callable bonds, registered bonds, bearer or coupon bonds, convertible bonds, commodity-backed bonds, (2) Interest rates for bonds: yield, nominal, stated, market and effective rates, and (3) Bond values, maturity, face, market and par value, brief description by Allen Mursau
Views: 1367 Allen Mursau
Bonds & Yields - part 3 (Hindi), Inflation vs Interest rates, बॉन्ड्स और यील्ड - 3
 
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This video explains the relationship between inflation and interest rates along with bond prices and rates. This video explains inflation and its effect on interest earned by investors. यह विडियो महंगाई दर और इंटरेस्ट रेट के बीच के सम्बन्ध को समझाता है, की किस प्रकार से महंगाई दर के बढ़ने और घटने का असर इंटरेस्ट रेट आदि पर पड़ता है.
Views: 10004 Rajiv Dharmadhikari
Who buys negative-yielding bonds? | FT Markets
 
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Read 'Why bond yields are so low' : http://on.ft.com/2e9kOE0 Negative yielding bonds are bonds which have a negative interest rate. It means that when a person buys those bonds, instead of generating profit, they lose money. Why would anyone buy such bonds then? Some institutions are forced legally, others are betting and hope to make money. ► Subscribe to the Financial Times on YouTube: http://bit.ly/FTimeSubs For more video content from the Financial Times, visit http://www.FT.com/video Twitter https://twitter.com/ftvideo Facebook https://www.facebook.com/financialtimes
Views: 5619 Financial Times
Bonds Explained for Beginners | Bond Trading 101
 
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Earn up to 1 Year Free: https://bit.ly/2oul70h Free Resources: https://bit.ly/2wymZbJ A bond is a type of loan issued to some type of entity such as a business or government by an investor. It’s similar to borrowing money from a lender if you’ve ever purchased a home or car before. Sometimes businesses need more money than the banks will offer them, so they issue bonds as a way to raise more capital. Governments can also issue bonds when they need more money for things like roads or parks. Bonds are considered safer on the risk spectrum for investments, but they also typically carry a lower return. Benjamin Graham, author of the intelligent investor and Warren Buffets mentor, recommends holding a portfolio of 75% stocks and 25% bonds during a bull market and 75% bonds and 25% stocks during a bear market. As opposed to other investments which are considered equity, bonds are considered debt which means that if a company goes under, it must repay all bondholders before stockholders. This is due to the fixed interest nature of the bond. When the investor purchases a bond at what’s called the face value, they are paid interest, known as the coupon or yield. The reason it’s referred to as coupon is because back when bonds were actually paper, investors would physically have to clip coupons to redeem their interest. Anyway, the investor is paid a coupon on the bond until the loan is fully paid back by the issuer. This is known as the maturity date. Interest payment frequency and the maturity date is determined prior to the purchase of the bond. For example, if I purchase a $1,000, 3-year bond with a 5% coupon, I know I’ll receive $50 in interest each year for 3 years. Now it’s important to note that Bonds can vary in risk and return A AAA bond is the best bond you can buy while a Ba bond and lower are more speculative and are known as Junk bonds When it comes to bonds, the higher the return, the higher the risk. The lower the return, the lower the risk. Bonds with a longer maturity date are also riskier and carry a higher return. Typically government bonds will be safer than corporate bonds. When it comes to taxation, corporate bonds are taxed regularly while some bonds like municipal and other government bonds are tax-exempt. A bond can also be secured or unsecured With an unsecured bond, you may lose all of your investment if the company fails while with a secured bond, the company pledges specific assets to give shareholders if they fail to repay their bonds. Although bonds are considered a “safer” investment, they still do come with risks. When you purchase a bond, interest rates are out of your control and may fluctuate. Interest rates are controlled by the U.S. treasury, the federal reserve, and the banking industry. This means that if specified in your agreement, the company may be able to issue a call provision which is an early redemption of the bond. While not always the case, companies will take advantage of lower interest rates to pay back loans early. This leaves you with a lower return than what you expected. Bonds are also inversely proportional to interest rates so when interest rates go up, bonds go down and vice versa. Bonds can also be traded between investors prior to its maturity date. A bond that’s traded below the market value is said to be trading at a discount while a bond trading for more than it’s face value is trading at a premium. Bonds can be a great way to diversify your investment portfolio, however, they can also be quite complex. You can use investment platforms like Fidelity, E-Tade, or Charles Shwabb to learn more about specific types of bonds. For today’s video, we will be using Fidelity. Social Links: Website: http://www.wharmstrong.com Twitter: http://bit.ly/2DBEhdz Facebook: http://bit.ly/2F5uB8a Instagram: https://www.instagram.com/wharmstrong1/ Disclaimer: Nothing published on my channel should be considered personal investment advice. Although I do discuss various types of investments and strategies, I am not a licensed professional. Please invest responsibly. This post contains affiliate links
Views: 6131 Will Armstrong
Is It a Bad Idea to Buy Bonds When Interest Rates Are Going Up?
 
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http://IncredibleRetirement.com 800-393-1017 Here’s something I bet you didn't know. The U.S. stock market, the size of the U.S. stock market is about $30 trillion. If you added up the value of all publicly traded stocks in the U.S., the market value of all those companies would come up to around $30 trillion, but what about bonds? Bonds are hardly ever mentioned or talked about in the financial media, but I bet you might be surprised to discover that the U.S. bond market is actually much bigger than the stock market. The U.S. bond market is estimated to be $40 trillion or more. That's right, the bond market is actually larger than the stock market and yet the financial media has almost all their attention and therefore our attention on the stock market. So what about bonds? Should you be buying bonds when interest rates are going up? You may have heard that when interest rates go up, bond values go down, which is true. Think of a seesaw or a teeter totter, the end that goes up is interest rates and the end that goes down is the underlying value of the bond. Bonds by the way are nothing more than a loan to a company or government or government agency. Typically bonds pay their interest twice a year, every six months, and when the loan comes due, they have a maturity date which could range anywhere from 90 days to 30 years, when you get your money back. If you look at long term returns of investments, let's say 15 year timeframe or longer, then it's no secret stocks have outperformed bonds by a large, large margin; so if stocks do better than bonds over the long term why not just have all of your money in stocks? Well the problem is while stocks tend to deliver nice, long term returns, but the short term oh, that could be a whole other story. Stocks on the short term can be extremely volatile. Just look what happened in the financial crisis of 2008. The S&P 500, the 500 largest publically traded companies in America, lost about 38% in value. So $100,000 in the S&P 500 at the end of 2008 was now worth $62,000. Ouch! That's a lot of short term volatility which tends to make you and I uncomfortable, to say the least. So how do we dampen or minimize that volatility? Imagine you have a sailboat and you have entered it into a race. One way to make your sailboat go faster is to make it lighter. But the lighter the sailboat, the more likely it is to capsize with a gust of wind. To prevent that you add weight or ballast to the sailboat. That slows the speed of the boat down but it reduces the odds of the boat capsizing and sinking. This is how you should think of bonds in your overall investment strategy. They are going to slow down the overall growth of your investment accounts but they are there to keep you from capsizing, to keep you from sinking during short-term periods of market volatility. So the answer to the question should you buy bonds, even when interest rates are going up, as a long term investor, the answer is a qualified yes, and here's what I mean by that. If you buy individual bonds and hold the bond until it matures or is called away early by the issuer then you'll receive the interest and get all your money back when the bond matures. The value of the bond can and will fluctuate while you own it, but it doesn't affect you if you hold it to maturity because then you get all your money back. This is why it's important to own individual bonds, especially in a rising interest rate environment, you don't lose money if you hold the bond until maturity. Why not just use a bond mutual fund? The problem with a bond mutual fund is it doesn't have a maturity date. People are constantly adding or withholding money from the mutual fund itself and typically at the wrong time. In a rising interest rate market, a lot of people in bond mutual funds take some or all of their money out of the mutual fund which forces the mutual fund manager to sell bonds even if they didn't want to. They have to generate the money to pay back the investors and that could drive the value or the price of bonds down even further. Ideally, you want to use individual bonds so you know for sure you get your money back when the bond matures. If you have a small account, and I would say a small account would be $200,000 or less, then you may not have enough money to properly diversify into individual bonds and you may have to still use bond mutual funds and if that's the case in a rising interest rate market you want to focus on short term bond funds or floating rate bond funds. Buying individual bonds as part of your investment strategy will help you move one step closer to experiencing your version of an incredible retirement doing what you want, when you want.
Views: 1515 Brian Fricke
This is how Professional Traders Trade Bonds - Interest Rate Futures trading interest rates
 
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Let me show the Correct Way to Trade Bond Futures Bond Futures LIVE Register HERE http://www.infinityfutures.com/webinarsRose83b.aspx Infinity Futures, Trading Bond Futures, how to trade the yield curve, using /ZN and /ZB Nobs Bubs Fits Fyts... interest rate futures, learn to trade CME Bond Futures bonds interest rates futures contract
Views: 2880 Jonathan Rose
Bonds | YTM | INTEREST RATES | COUPON | YIELD | HINDI
 
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This video will help in understanding various topics like Bonds, Interest rates, YTM, Coupon Rate, Maturity, Yields, Relation of Interest rates with Bond Price
Views: 1113 GeekDonkey
Rising Interest Rates and Bonds
 
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Adam Bold, founder and CEO of The Mutual Fund Store, worries about a bond bubble in the current interest rate environment.
Views: 1601 Financial Engines
Should I Invest in Bonds When Interest Rates are Low?
 
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Since interest rates are at all-time lows, does that mean we should sell our bonds? Joe answers this viewer’s question in 60 seconds. Important Points 0:09 "We certainly believe in the asset allocations; we have approximately 40%-50% in bonds. With bonds doing so well over the past thirty years, I'm concerned with the direction of the bonds and [wondering] if perhaps we should put more into other equities" 0:32 "We're in a huge bond bull market because when interest rates go down, bond prices go up. So interest rates are basically at all-time lows" 0:47 "You have to look at bonds a little bit differently; you want to look at bonds to damper the overall volatility of the overall portfolio" 0:55 "Depending on what your time frames, your goals and everything else is, you don't want to look at bonds as an income stream potentially...you want to look at a total return portfolio" 1:09 "You absolutely want to make sure that you have some safety in your overall portfolio. 40% in bonds sounds reasonable; the other 60% in equities you want to make sure that it's globally diversified - when equities go up your bond prices are going to stay straight. When equities go down, your bonds are going to save you" 1:24 "You definitely want to keep bonds in your portfolio even in a low-interest environment" 1:37 "The key I would say is look at a total return, don't look at each individual asset class" If you would like to schedule a free assessment with one of our CFP® professionals, click here: https://purefinancial.com/lp/free-assessment/ Make sure to subscribe to our channel for more helpful tips and stay tuned for the next episode of “Your Money, Your Wealth.” Channels & show times: yourmoneyyourwealth.com https://purefinancial.com IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, Inc. A Registered Investment Advisor. • Pure Financial Advisors Inc. does not offer tax or legal advice. Consult with their tax advisor or attorney regarding specific situations. • Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. • Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. • All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. • Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
Bonds - Coupon and Market Rates Differ
 
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Lesson discussing how the value of a bond changes when coupon rates and market rates differ. Looks at why a bond will trade at a premium, discount, or at par For more questions, problem sets, and additional content please see: www.Harpett.com. Video by Chase DeHan, Assistant Professor of Finance at the University of South Carolina Upstate.
Views: 4066 Harpett
[Stock Market Today] The Yield Curve (interest rates, and bonds) are in Charge!
 
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Let me show the Correct Way to Trade Bond Futures Jonathan Rose of Active Day Trader teaches stocks and futures traders how to trade futures, specifically interest rate futures. In this short video, Jonathan explains why the steepness in the yield curve, is driving the upward momentum of the backend of the yield curve higher which is forcing the VIX higher, and volatility in options to rise.
Views: 936 Jonathan Rose
BUS123 Chapter 09 - Introduction to Bonds, Interest Rates and Bond Prices - Slides 1 to 24 - Fall 18
 
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Bonds are not very ... well, they are more kinda’ like ... uh, how shall we say it? Okay, let’s not mince words: Bonds are boring! Stocks are exciting, sexy, and dangerous. Bonds are stodgy, reliable, and, yes, boring. In this first session, we introduce bonds and many of their characteristics and spend a great amount of time discussing the relationship of bonds and interest rates. Should you own bonds in your portfolio? Let’s find out.
Views: 76 WonderProfessor
Bonds, the Bond Markets and Interest Rates
 
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This video is an introduction to bonds, the bond markets, and how the bond prices affect interest rates and GDP.
Views: 760 mcneilecon
BUS123 Chapter 09 - Introduction to Bonds, Interest Rates and Bond Prices - Slides 1 - 24 - Fall17
 
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Bonds are ... well, they are more kinda’ like ... uh, how shall we say it? Okay, let’s not mince words: Bonds are boring! Stocks are exciting, sexy, and dangerous. Bonds are stodgy, reliable, and, yes, boring. In this first session, we introduce bonds and many of their characteristics and spend a great amount of time discussing the relationship of bonds and interest rates. Should you own bonds in your portfolio? Let’s find out.
Views: 53 WonderProfessor
JC Parets on Treasury Bonds & Interest Rates
 
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JC Parets from Eagle Bay Capital talks about a possible upcoming breakout in Government debt that should coincide with lower interest rates.
Views: 654 AllStarCharts
What Is The Interest Rate On Government Bonds?
 
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This makes treasury current interest rates. Us 10 year government bond interest rate is at 2. Today (3 22 2012) the interest rate on ee series savings bond 3 feb 2016 treasury yields keep sliding. Coupon interest and yield for etbs treasury bonds how to earn 3. Rates are mainly determined by the price charged lender, risk from get updated data about us treasuries. But amazingly enough, u. When i read this statement, thought it was odd. Us 10 year government bond interest rate ycharts. The 8% government of india bonds livemint. Latest bond rates, interest libor and interbank rates ft. Interest rates long term interest oecd data. Average interest rates on u. Rates & bonds bloomberg. Negative interest rates a third of all government bonds are quartz. 5% on a us savings bond forbes. Show is the interest rate on a treasury bond determined? Interest rates and your investments investopedia. If you are just remember anything that increases the demand for long term treasury bonds puts downward pressure on interest rates (higher higher refer to government maturing in ten years. Graph and download economic data from jan 1957 to oct 2016 about india, securities, bonds, government, interest rate, interest, rate at karvy value, chose a list of top tax free bonds in india with coupon & last traded price, etc. 13 apr 2016 other comparable products such as fixed deposits from banks like sbi and hdfc bank pay a maximum of 7. The incredible shrinking interest rate febtreasury bonds cbk central bank of kenya. Fixed rate from jul 2017, inflation effective 01 jun 2017. List of best government bonds in india bond 10y calendar average interest rates on u. Sthe files listed below illustrate the average interest rates for marketable and non securities over 15 apr 2015 explore difference between bond coupons, what determines current yield on debt instruments, why treasury prices most investors care about future rates, but none more than bondholders. The bonds will bear interest at the rate of 8. Government of india savings bond make a comeback. Under income tax act, the by interest on india 10y increased 0. Bond rates look shockingly high when compared to yields for other developed most treasury bonds in kenya are fixed rate, meaning that the interest rate determined at auction is locked entire life of bond. Rates rsa retail savings bonds. 19 Government of india savings bond make a comeback. Find information on government bonds yields, muni and interest rates in the usa 7 jul 2016 if you were to buy, at random, any bond, there is a one three third of global debt now has negative latest international benchmark treasury bond rates, yield curves, spreads, interbank official coupon rate set when first issued by australian are medium long term securities that carry an annual fixed over life 22 mar 2012 source us dept. Feb 2017 they carry an assured interest rate of. Bonds infrastructure bonds, bonds market, capital gains interest rates, government securities, for india tax free. Inflation rate inflation linked 5 year bond, 2.
Views: 191 new sparky
Excel Finance Class 54: Bonds & Interest Rate Risk
 
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Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm Learn Interest Rate Risk: 1. The Longer The Maturity, The More YTM Affects Bond Price 2. The Lower The Coupon Rate, The More YTM Affects Bond Price
Views: 12795 ExcelIsFun
[Economy Lecture] L2/P2: Inflation Indexed Bonds (IIB), Nominal vs Real Interest rates
 
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1. What is the difference between nominal interest rate vs real interest rate? 2. Why do people invest in gold and real-estate during inflation? 3. Why is excessive gold-consumption bad for Indian economy? How to prevent it? 4. Differences between IIB an IINSS-C 5. Computation mechanism for interest paid on IIB, how is it linked with inflation? 6. Why are inflation indexed bonds (IIB) losing their sheen in 2015? Powerpoint available at http://Mrunal.org/download Venue: Sardar Patel Institute of Public Administration (SPIPA), Satellite, Ahmedabad, Gujarat,India Exam-Utility: UPSC CSAT, CDS, CAPF, SSC, IBPS, Banking, MBA interview
Views: 310176 Mrunal Patel
Book Value vs Market Value vs Face Value of Bonds: How to Keep Them Straight
 
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You’ll learn about the book value vs market value vs face value of bonds in this tutorial, and you’ll understand how to calculate and project them in financial models. https://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Resources: https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Book-Value-vs-Face-Value-Slides.pdf https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Book-Value-vs-Face-Value.xlsx Table of Contents: 3:06 Excel Examples 11:04 Combined Example 14:46 Recap and Summary SHORT ANSWER: Face Value is the amount of Debt that a company issues, pays interest on, and must repay upon maturity. It is affected ONLY by Debt issuances, principal repayments, and Accrued or “Paid-in-Kind” (PIK) Interest. Book Value is the Debt that shows up on a company’s Balance Sheet under Liabilities & Equity, but it is NOT necessarily the amount it pays Interest on or what it must eventually repay. It’s affected by everything above (issuances, repayments, and accrued interest), plus Issuance Fees, any Discount or Premium when the bond is first issued, and the amortization of both those items. Market Value is what someone else would pay to buy the company’s Debt on the secondary market if it trades like that. It’s affected by interest payments, market interest rates on similar Debt, and future repayment upon maturity. In practice, the bond’s coupon rate vs market rates, as well as the credit default risk of the issuer, make the biggest impact. EXCEL EXAMPLES: Toro is spending a lot and must issue additional Debt to fund operations in several years. The Face Value of Debt goes up when new Debt is issued and down when there’s a repayment or maturity. The Book Value of Debt also changes based on these, but we also must deduct the 2% financing fee on new issuances and add the amortization of these financing fees over 10 years. We don’t know enough to determine the Market Value since it depends on current market rates vs the 6.1% coupon rate the company is currently paying. In another example, Atlassian has issued a Convertible Bond that matures in 5 years, if it’s not converted into Equity before then. Convertible Bonds are often separated into Equity and Debt components to reflect their dual nature, and the Book Value here equals the Face Value minus the Unamortized Issuance Fees minus the Debt Discount, which represents the difference in value between a traditional, non-convertible bond with a higher interest rate and the much-lower-rate convertible bond. The Face Value here never changes until the end because there are no additional issuances, there’s no accrued interest, and there’s only the single maturity at the very end. Cash Interest never changes since it’s always based on this constant Face Value and a constant interest rate. The Book Value keeps increasing as the Debt Discount is amortized over time and as the Issuance Fees are also amortized, but it finally reaches $0 at the same time as the Face Value. We don’t know enough to determine the Market Value, as we’d need to know the prevailing market interest rates on similar bonds and Atlassian’s default risk. ONE EXAMPLE TO RULE THEM ALL: Assume that a company issues a $1,000 10-year bond at a 5.00% coupon rate vs prevailing market rates of 6.35% on similar bonds. There are no principal repayments, and the interest is 100% Cash. There is a 2% issuance fee. Due to the below-market rate, the bond is issued at a $100 Discount. The Face Value is $1,000 initially, and it never changes until maturity. The Cash Interest is 5% * $1,000 = $50 per year until maturity. The initial Book Value is the $1,000 Face Value – $100 Discount – $20 Issuance Fee = $880. The Book Value will change according to the amortization of the Discount and the amortization of the Issuance Fees each year. Book Value, Year 1: $880 + $100 / 10 + $20 / 10 = $892 Book Value, Year 2: $892 + $100 / 10 + $20 / 10 = $904 The Market Value is initially the $1,000 Face Value minus the $100 Discount (verify with the PRICE function in Excel), so $900. We don’t know exactly how it will change over time because we don’t know future interest rates, but if rates go up, the Market Value will go down, and if credit default risk goes up, the Market Value will also go down (and vice versa for both of these). Does Book Value vs Market Value vs Face Value for Bonds Matter? In most cases, these distinctions don’t make a huge difference. If you’re under time pressure, you can simplify all this and include only Issuances and Repayments to project Debt. But interview questions on these topics could still come up, and if a company has a Convertible Bond or a normal bond issued at a big discount or premium, the Book Value vs Face Value distinction matters since interest is based on Face Value.
How will rising interest rates affect my bonds or mutual funds?
 
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How will rising interest rates affect my bonds or mutual funds? | Silver Law Group | Securities and Investment Fraud | Free Case Evaluation : (800) 975-4345 | 11780 W. Sample Road | Coral Springs, FL 33065 Many financial advisors sold bonds and bond products to their clients, telling them that bonds provide a safer, more conservative investment approach than investing in stocks. Over the last few years we have seen a rise in claims involving bonds and bond products that were much riskier than the average investor appreciated because these investments either utilized leverage where high yield junk bonds over other alternative bonds that were much riskier than your traditional bonds that investors purchased. We expect over the next few years, if interest rates are to rise, to see a dramatic rise in these types of claims.
Views: 90 Silver Law Group
Ask the CFP - March 2014 - Interest Rates & Bonds
 
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A monthly "Ask The CFP" segment where Travis Freeman, CFP, answers your tough financial questions. While we believe the information in this report is reliable, we cannot guarantee its accuracy. Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision. Securities offered through LPL Financial, member FINRA/SIPC.
Views: 62 TravisFreemanCFP
8. Value a Bond and Calculate Yield to Maturity (YTM)
 
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Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, we began to understand the important terms that truly value a bond. Since most investors will never hold a bond throughout the entire term, understanding how to value the asset becomes very important. As we get into the second course of this website, a thorough understanding of these terms is needed. So, be sure to learn it now and not jump ahead. We learned that there are two ways to look at the value of a bond, simple interest and compound interest. As an intelligent investor, you'll really want to focus on understanding compound interest. The term that was really important to understand in this lesson was yield to maturity. This term was really important because it accounted for almost every variable we could consider when determining the true value (or intrinsic value) of the bond. Yield to Maturity estimates the total amount of money you will earn over the entire life of the bond, but it actually accounts for all coupons, interest-on-interest, and gains or losses you'll sustain from the difference between the price you pay and the par value.
Views: 386085 Preston Pysh
Rising Interest Rates Bad for Bonds - Everything Investments
 
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Interest Rates Bad for Bonds - Everything Investments Sign up for our newsletter today http://eepurl.com/ES-x5 Find out more about this at our website http://www.everythinginvestments.com When interest rates go up, bond prices fall. The reason for this is because income investors looking to loan money out, wonʼt buy a lower rate bond, if they can purchase one today for a higher rate. The opposite is true for when interest rates fall, this causes investors to pay a higher price for bonds issued out with higher rates, so when interest rates fall, bonds rise in value. Lets use an example, lets say the U.S. Treasury is issuing out bonds at 2% today, this means that for every $100 invested, you are receiving $2 per year until the date of maturity. However if rates rise to 4%, your bond could fall in value 50%, why? Because in order for a new investor to receive the same 4% maturity he will get from a new bond issued, he will need to purchase your bond for $50, giving him $2 a year in interest which is 4% return. It is important to understand this only effects bond traders, if you hold any bond to maturity, assuming the borrow doesnʼt default, you will receive your entire principal plus interest. So as long as you hold a bond to maturity, you wonʼt lose money. However this