Search results “Coupon bond yield curve”

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
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Views: 334541
Khan Academy

This video demonstrates how to calculate the yield-to-maturity of a zero-coupon bond. It also provides a formula that can be used to calculate the YTM of any zero-coupon bond.
Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com
To like us on Facebook, visit https://www.facebook.com/Edspira
Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com
To follow Michael on Facebook, visit
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Views: 29145
Edspira

In this video I introduce the concept of yield curves - plots of yield to maturity for various times to maturity for instruments of a similar quality (and often same issuer)
I show how we can bootstrap a zero curve (spot curve) from a series of coupon paying instruments as long as we have one instrument on the yield curve that has only one cashflow remaining - this begins the bootstrapping process.
I explain how the spot curve can be used to discount the individual cashflows at the correct time/discount factor to arrive at a more accurate fair price for the bond, and then the YTM can be calculated from that price.

Views: 7460
Matt Thomas

A simple comparison using a 2.5 year $100 par 6% semiannual coupon bond. Spot rate: the yield for each cash flow that treats the cash flow as a zero-coupon bond. A coupon-paying bond is a set of zero-coupon bonds. Forward rate: the implied forward rates that make an investor indifferent to rolling over versus investing at spot.
Yield to maturity (YTM, an IRR): the single rate that can be used to discount all of the bond's cash flows, in order to price the bond correctly. So the YTM is a flat horizontal line. For more financial risk videos, visit our website! http://www.bionicturtle.com

Views: 46424
Bionic Turtle

Financial Theory (ECON 251)
Where can you find the market rates of interest (or equivalently the zero coupon bond prices) for every maturity? This lecture shows how to infer them from the prices of Treasury bonds of every maturity, first using the method of replication, and again using the principle of duality. Treasury bond prices, or at least Treasury bond yields, are published every day in major newspapers. From the zero coupon bond prices one can immediately infer the forward interest rates. Under certain conditions these forward rates can tell us a lot about how traders think the prices of Treasury bonds will evolve in the future.
00:00 - Chapter 1. Defining Yield
09:07 - Chapter 2. Assessing Market Interest Rate from Treasury Bonds
35:46 - Chapter 3. Zero Coupon Bonds and the Principle of Duality
50:31 - Chapter 4. Forward Interest Rate
01:10:05 - Chapter 5. Calculating Prices in the Future and Conclusion
Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses
This course was recorded in Fall 2009.

Views: 48751
YaleCourses

It's an Econon thing.

Views: 279
scottab140

Pre-requisites:
Yield curve (Fixed income 03)

Views: 948
A&A Academy

Bonds and Bond Yields. A video covering Bonds and Bond Yields
Instagram @econplusdal
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Views: 23135
EconplusDal

You read about it a lot in the business pages, and it sounds super complicated. But the yield curve is dead easy to read. Especially if you've every played chutes and ladders (snakes and ladders in the UK)

Views: 48001
Marketplace APM

In this revision video we work through some numerical examples of the inverse relationship between the market price of fixed-interest government bonds and the yields on those bonds.
Government bonds are fixed interest securities. This means that a bond pays a fixed annual interest – this is known as the coupon
The coupon (paid in £s, $s, Euros etc.) is fixed but the yield on a bond will vary
The yield is effectively the interest rate on a bond. The yield will vary inversely with the market price of a bond
1.When bond prices are rising, the yield will fall
2.When bond prices are falling, the yield will rise
- - - - - - - - -
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Views: 29177
tutor2u

Learn how to use spreads to trade the yield curve, a common strategy and cash and futures U.S. treasury markets.
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Views: 723
CME Group

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KEY POINTS
1. Bond prices and bond yields move in opposite directions. When bond prices go up, that means yields are going down; when bond prices go down, this means yields are going up. Mathematically, this is because yield is equal to:
annual coupon payments/price paid for bond
A decrease in price is thus a decrease in the denominator of the equation, which in turn results in a larger number.
2. Conceptually, the reason for why a decrease in bond price results in an increase bond yields can be understood through an example.
a. Suppose a corporation issues a bond to a bondholder for $100, and with a promise of $5 in coupon payments per year. This bond thus has a yield of 5%. ($5/$100 = 5%)
b. Suppose the same corporation then issues additional bonds, also for $100 but this time promising $6 in coupon payments for year -- and thus yielding 6%.
No rational investor would choose the old bond; instead, they would all purchase the new bond, because it yielded more and was at the same price. As a result, if a holder of the old bonds needed to sell them, he/she would need to do so at a lower price. For instance, if holder of the old bonds was willing to sell it at $83.33, than any prospective buyer would get a bond that earned $5 in coupon payments on an $83.33 payment -- effectively an annual yield of 6% (5/83.33). The yield to maturity could be even higher, since the bond would give the bondholder $100 upon reaching maturity.
3. The longer the duration of the bonds, the more sensitivity there is to interest rate moves. For instance, if interest rates rise in year 3 of a 30 year bond (meaning there are 27 years left until maturity) the price of the bond would fall more than if interest rates rise in year 3 of a 5 year bond. This is because an interest in interest rates reduces the relative appeal of existing coupon payments, and the more coupon payments that are remaining, the more interest rate fluctuations will impact the price of the bond.
4. Lastly, a small note on jargon: when investors or commentators say, "bonds are up," (or down) they are referring to bond prices. "Bonds are up" thus means bond prices are up and yields are down; conversely, "bonds are down" means bond prices are down and yields are up.

Views: 54384
InformedTrades

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Views: 7137
ASWINI BAJAJ

In this Excel Library video, we take a limited amount of bond yield information, and then extrapolate and interpolate from this a good-fitting yield curve which covers all the 'potential' rates in-between.
We do this using the Nelson-Siegel-Svensson method, via the Excel data tool, Solver, and minimise residual error squares to create a believable yield curve, despite a lack of complete information.
The main block of Nelson-Siegel-Svensson Excel formula code used in this video can be copied from here:
http://mithrilmoney.com/excel-library-generating-a-yield-curve-with-the-nelson-siegel-svensson-method/
For financial education from London to Singapore and beyond, please contact MithrilMoney via the following website:
http://mithrilmoney.com
This MithrilMoney lecture was delivered by Andy Duncan, CQF.
Please read our disclaimer:
http://mithrilmoney.com/disclaimer/

Views: 45473
MithrilMoney

define and compare the spot curve, yield curve on coupon bonds, par curve, and forward curve;

Views: 1
Ted Stephenson

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: 464161
Khan Academy

This video will show you how to calculate the bond price and yield to maturity in a financial calculator.
If you need to find the Present value by hand please watch this video :)
http://youtu.be/5uAICRPUzsM
There are more videos for EXCEL as well
Like and subscribe :)
Please visit us at http://www.i-hate-math.com
Thanks for learning

Views: 263522
I Hate Math Group, Inc

The theoretical spot rate curve is different than the par yield curve. Here is how to bootstrap the spot rate. For more financial risk videos, visit our website! http://www.bionicturtle.com

Views: 82683
Bionic Turtle

The current yield and yield to maturity (YTM) are two popular bond yield measures. The current yield tells investors what they will earn from buying a bond and holding it for one year. The yield to maturity (YTM) is the bond's anticipated return if held until it matures.

Views: 82297
Investopedia

Calculation of the theoretical Treasury spot rate curve using bootstrapping and the value of a bond using spot rates.

Views: 23206
EduPristine

The yield (aka, yield to maturity, YTM) is the single rate that correctly prices the bond; it impounds the spot rate curve. For each coupon bond, there is a different implied yield. The PAR YIELD is the yield (YTM) for a bond that happens to price at par, and therefore is equal to this bond's coupon. So, the par yield (as a special case or particular YTM) is the coupon rate on a bond priced at par.

Views: 17121
Bionic Turtle

A debt security that doesn't pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.
For more Investopedia videos, check out; http://www.investopedia.com/video/

Views: 45980
Investopedia

MBA:8180 Managerial Finance Zero Coupon Bonds and The Yield Curve Video

Views: 7
Thomas Rietz

If you've been following what the Federal Reserve is doing with the interest rate, you have probably heard them talk about the yield curve. Marketplace Senior Editor Paddy Hirsch explains what the curve is and what happens if it gets flattened.
For more stories:
marketplace.org/whiteboard

Views: 57297
Marketplace APM

This video shows how to calculate the yield-to-maturity of a zero-coupon bond using forward rates. A comprehensive example is provided to demonstrate how a formula can be used to compute the yield of a zero-coupon bond when you know the forward rates.
Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com
To like us on Facebook, visit https://www.facebook.com/Edspira
Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com
To follow Michael on Facebook, visit
https://facebook.com/Prof.Michael.McLaughlin
To follow Michael on Twitter, visit
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Views: 6478
Edspira

This module discusses properties of the various yield curves used in fixed income analysis, including the construction of the zero-coupon and the forward yield curves from the ordinary curve for bills and bonds as well as the theories behind the different shapes that these curves can take.

Views: 905
DNA Training & Consulting

In this lecture we describe the inverted yield curve and how it differs from the normal yield curve.
Before we get to that, we explain the strategy of 'riding the yield curve' and then why the inverted yield curve is such a dangerous thing when riding the yield curve.
We explain why the inverted yield curve usually occurs, and why this makes it a good leading economic indicator for predicting near-term recessions.
Along the way, we also introduce Zero-Coupon bonds, which are bonds with a single principal maturity payment without any intervening coupon-interest payments.
Previous lecture: http://www.youtube.com/watch?v=j1Fq_1pg7xE
Next lecture: http://www.youtube.com/watch?v=BW4J2HAd4VI
For financial education from London to Singapore and beyond, please contact MithrilMoney via the following website:
http://mithrilmoney.com/
This MithrilMoney lecture was delivered by Andy Duncan, CQF.
Please read our disclaimer:
http://mithrilmoney.com/disclaimer/

Views: 21922
MithrilMoney

This narrated PPT describes how a zero coupon bond works, along with an example of how to calculate the yield to maturity. We contrast the yield to maturity with the bond equivalent yield.

Views: 21173
Elizabeth Schmitt

Views: 1563
GSB MOOC

simple calculation in Excel of a yield curve starting with the forward curve

Views: 6095
Joe Troccolo

This video shows how to calculate the Forward Rate using yields from zero-coupon bonds. A comprehensive example is provided along with a formula to show how the Forward Rate is computed based on zero-coupon yields.
Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com
To like us on Facebook, visit https://www.facebook.com/Edspira
Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com
To follow Michael on Facebook, visit
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To follow Michael on Twitter, visit
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Views: 64196
Edspira

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:
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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: 334795
Preston Pysh

We offer the most comprehensive and easy to understand video lectures for CFA and FRM Programs. To know more about our video lecture series, visit us at www.fintreeindia.com
Video lecture recorded during a live classroom session of FRM Part- I in FinTree at Pune center.
This Video covers bootstrapping spot rates from bond prices.

Views: 15823
FinTree

Many investors believe the terms coupon, yield and expected return are interchangeable when it comes to bonds and other fixed income investments. Buckingham Fixed Income Advisor Jared Kizer discusses the important differences among these terms.

Views: 11822
Buckingham Strategic Wealth

This module discusses properties of the various yield curves used in fixed income analysis, including the construction of the zero-coupon and the forward yield curves from the ordinary curve for bills and bonds as well as the theories behind the different shapes that these curves can take.

Views: 92
DNA Training & Consulting

Kamakura Risk Manager was used to create maximum smoothness forward rates and zero coupon yields from U.S. Department of the Treasury data on a daily basis from January 2, 1962 to December 30, 2016. More at [email protected]

Views: 1192
KamakuraCorporation

This video introduces the concept of Bonds. What are bonds and why are they issued. What is a bond, meaning and information of bonds in Hindi. बॉन्ड्स क्या होते है, बॉन्ड्स और बॉन्ड मार्किट की जानकारी, बॉन्ड्स का अर्थ, बॉन्ड्स ट्रेडिंग और बॉन्ड यील्ड. बॉन्ड या बॉन्ड्स (Bonds) एक प्रकार का ऋण होता है. इसे एक प्रकार का उधार पत्र भी कह सकते है. इसे आमतौर पर किसी देश की सरकार के द्वारा जारी किया जाता है.

Views: 19315
Rajiv Dharmadhikari

Let me show the Correct Way to Trade Bond Futures
Learn how to Trade Bond Futures. DONT MISS YOUR FREE WEEK https://goo.gl/RXhLnY .This is Bond Futures Trading Strategies tutorial.
What is Bond Futures?
Although the stock market is the first place in which many people think to invest, the U.S. Treasury bond markets arguably have the greatest impact on the economy and are watched the world over. Unfortunately, just because they are influential, doesn't make them any easier to understand, and they can be downright bewildering to the uninitiated.
At the most basic level, a bond is a loan. Just as people obtain a loan from the bank, governments and companies borrow money from citizens in the form of bonds. A bond really is nothing more than a loan issued by you, the investor, to the government or company, the issuer.
For the privilege of using your money, the bond issuer pays something extra in the form of interest payments that are made at a predetermined rate and schedule. The interest rate often is referred to as the coupon, and the date on which the issuer must repay the amount borrowed, or face value, is called the maturity date.
One wrinkle in the equation, though, is that not all debt is created equal with some issuers being more likely to default on their obligation. As such, credit rating agencies evaluate companies and governments to give them a grade on how likely they are to repay the debt (see "Good, better, best").
Benji Baily and Delmar King, fixed income investment managers at Everence Financial, say ratings generally can be classified as investment grade or junk. "Anything that's considered to be an investment grade, you would have a fairly high probability that you're going to get your money back at maturity," King says. "Of course, the lower you go down the credit spectrum, the more risk there is of default and the possibility that you could have losses. Therefore, the lower the security grade you have, the more yield compensation you should have for taking that default risk."
So, if you purchased a 30-year U.S. Treasury bond (currently AA+ from S&P and AAA from Moody's and Fitch) for $100,000 with a coupon rate of 6%, then you could expect to receive $6,000 a year for the duration of the bond and then receive the face value of $100,000 back. At least, that's how a bond would work if you held it to maturity.
Rather than hold a bond to maturity, they also can be traded. But, as a bond is traded, interest rates can change, so the overall value of the bond can change. "If you bought a bond that has a 10% coupon and the rest of the market is fine with owning a 1% coupon, then someone is going to love to have that 10% coupon until maturity," Baily says. "Conversely, if you have a 1% bond and everyone else is expecting that the market in general will be at 10%, then you're going to need to pay someone a lot of money to take that 1% bond instead of buying a new 10% bond."
Because coupon rates generally are fixed, to adjust for future expectations the price of the bond or note has to move up or down. If yields, the interest or dividends received on a security, go up, the price will fall to accommodate that higher yield; if yields go down, then price has to go up.
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Views: 3974
Jonathan Rose

What is the zero coupon yield curve - Find out more explanation for : 'What is the zero coupon yield curve' only from this channel.
Information Source: google

Views: 6
theaiueo theaiueo

This video graphs the movements in maximum smoothness forward rates and zero coupon bond yields for the Thai Government Bond yield curve, daily from September 15, 1999 to December 30, 2016. Analysis by Kamakura Corporation from data from the Thai Bond Market Association. We recommend the video that uses "Thai On the Run" maturities only. The full set of yields from the Thai Bond Market Association contains some smoothing errors.

Views: 79
KamakuraCorporation

This video explains the concept of yield i.e. what is yield, calculation of yield and correlation between the prices of bonds and yields. This video is very important for learning the concept of bonds and is very useful for beginners and experts who want to learn more about trading in stock markets. This video also explains the concept of yield to maturity. यह विडियो यील्ड का अर्थ क्या होता है और यील्ड तथा बॉन्ड्स के भावों के बीच का सबंध सिखाता है.

Views: 10554
Rajiv Dharmadhikari

How to estimate treasury spot rates (term of structure interest rates) based on Treasury yields.

Views: 2682
Qobil Yunusov

Consider the following spot interest rates for maturities of one, two, three, and four years.
Year | Rate
1 | 4%
2 | 5%
3 | 6%
4 | 7%
What is the price of a four year, 4 percent coupon bond with a face value of $100? Assume the bond pays an annual coupon.
What are our expectations of the yield for a one year bond that starts in one, two, and three years, i.e., what are the forward rates?
Suppose the inflation expectations are a constant 2 percent, what are the expected real interest rates for each one year period in the future?
Suppose that immediately after purchasing the bond that market expectations of the inflation rate decrease to a constant one percent. What are our new nominal forward rates? Assume expectations of real interest rates have not changed.
In one year, what do we expect the new term structure of interest rates to be?
In one year, what do we expect the price of the bond to be based on the new term structure of interest rates?
What do we expect the holding period return to be if you sell it immediately after receiving the first year’s coupon?
Note: There is a typo in calculating the holding period return. The correct formula is (92.22 - 90.17 + 4)/90.17 = 6.7%
Note: A pdf of the solution is available from here: https://goo.gl/MeMDkv

Views: 1650
Jonathan Kalodimos, PhD

Using Kamakura Risk Manager, forward rates and zero coupon bond yields were generated to be consistent with yield curves published by the Monetary Authority of Singapore. The maximum smoothness forward rate technique of Adams and van Deventer was applied.

Views: 110
KamakuraCorporation

Given four inputs (price, term/maturity, coupon rate, and face/par value), we can use the calculator's I/Y to find the bond's yield (yield to maturity). For more financial risk videos, visit our website! http://www.bionicturtle.com

Views: 103492
Bionic Turtle

Example: Suppose you have a risk-free bond that has a face value of $100, a two year maturity, pays a 3 percent coupon with semiannual coupons. The bond is currently trading at $97. What are the stream of cash flows associated with the bond? What is the yield to maturity.

Views: 1639
Jonathan Kalodimos, PhD

This narrated PPT describes how a coupon bond works, along with an example of how to calculate the yield to maturity. We contrast the yield to maturity with the bond equivalent yield.

Views: 1466
Elizabeth Schmitt

OMG wow! I'm SHOCKED how easy! Clicked here http://www.youtube.com/watch?v=eE-vj43wHOQ No wonder others goin crazy sharing this???
What amount is best to be willing to pay for a bond? A bond's value is driven by impending cash flows you are likely to generate by possessing the bond. Where do the prospective cash flows come from? They come from 1) the coupon payments which symbolize cash earnings for the owner of the bond, and 2) the remuneration of principal ("face value" of the bond).Utilizing the Bond Valuation Formula and presuming a 5% level of interest from a bank, a bond that has a $1,000 face value and 4% coupon rate which might grant you $4 annually for 7 years plus enable you to recoup the $1,000 face value after 7 years should in truth maintain a fair value of $941... which happens to be obviously less than the $1,000 face value. Thus even if the face value is $1,000, you must be prepared to pay a maximum of only $941 to obtain this bond.(The formula is a bit complicated and concerns an abundance of aspects, such as the yield or yield to maturity, remaining time until maturity, not to mention different variables. You ordinarily don't need to actually do calculations by yourself if you're not in business school. There are loads of accessible calculators via the internet.)What exactly does the $941 earlier mentioned suggest? If you should pay more than $941 for this bond, you would be better off depositing your dollars in the bank instead. Put differently, in case you compensate beyond $941, your rate of return for maintaining this bond could possibly be under the bank interest rate of 5%. Consequently... it would be preferable to deposit in the bank.So when a bond is obtained or sold, is it acquired or sold at the face value or at the fair value?For the most part, if it happens to be the first time a bond is being issued and sold by the issuing firm in the primary bond market, it is carried out with the face value. However, in the secondary market, in the event the bond is purchased or sold by unique people, it is exchanged at market value, which is often differ from both the face value and fair value. The market value is basically what true persons are prepared to pay or deal for the bond, whether or not this is much less or greater than the face value and/or fair value. Normally though, the market value is nearer to the fair value than to the face value. Take into account however, that in the secondary market, a large component which impacts bond price is risk as symbolized by its credit rating, and this factor is not covered in the formula used to find out how to value a bond which has been referred to above. http://www.youtube.com/watch?v=eE-vj43wHOQ http://mbabullshit.com/blog/bond-valuation-in-35-minutes/

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The Key Elements of Portfolio Management. Portfolio Management Tips for Young Investors. One of the reasons most often given for not investing is a lack of knowledge and understanding of the stock market. This objection can be overcome through self-education and step-by-step through the years because investors learn by investing. Classes in investing are also offered by a variety of sources, including city and state colleges, civic groups, and not-for-profit organizations, and there are numerous books aimed at the beginning investor. Start Early. Early Higher Risk Allocation. An Exemplary Egg. The idea is to select stocks across a broad spectrum of market categories. This is best achieved through an index fund. Aim to invest in conservative stocks with regular dividends, stocks with long-term growth potential, and a small percentage of stocks with better returns or higher risk potential. Certain AAA-rated bonds are also good investments for the long term, either corporate or government. Long-term U.S. Treasury bonds, for example, are safe and pay a higher rate of return than short- and mid-term bonds. Keep Costs to a Minimum.