This video will help you understand why companies issue bonds at a discount. We will not go over any calculations in this video. 🌟Let's Connect on LinkedIn🌟 / brandyrosedudas
The mechanics of it can be a bit confusing but the reason behind it is not 😀 - I also have videos on actually doing the calculations for when you get there!
The sound quality was a little rough, but it was honestly worth it for the material. You answered that question very well. I feel a lot more capable in understanding not only bonds discounts, which is why I came here for, but bonds in general. Great Job!
I know this is old, but if you still reply, i have a question. Say I get a 1 year bond discounted to .97 with a six month coupon payment at 5%. At maturity, what would i expect? The face value of 100 and 6 months interest?
so will the interest be calculated on basis of the discounted price? or will i be receiving interest based on the face value price, in this case 1000$?
The CASH received is based on the face value but the interest recorded for accounting is recorded based on the discounted price. I have a bonds payable video that goes through the accounting:)
very helpful, using money and actual bond prices to show loss helped way more then everywhere else i've search that keeps using terms i don't know to explain something i'm confused on with out using numbers
The course I am taking made this seem confusing. This summed it up quick and easy, thank you.
The mechanics of it can be a bit confusing but the reason behind it is not 😀 - I also have videos on actually doing the calculations for when you get there!
The sound quality was a little rough, but it was honestly worth it for the material. You answered that question very well. I feel a lot more capable in understanding not only bonds discounts, which is why I came here for, but bonds in general. Great Job!
Thanks for the quick explanation! Your mic did not bother me.
I know this is old, but if you still reply, i have a question.
Say I get a 1 year bond discounted to .97 with a six month coupon payment at 5%.
At maturity, what would i expect? The face value of 100 and 6 months interest?
Thank you so much for the quick and interesting explanation. I didn't understand the thing before watching your video. Now i understood.
Awesome ,simple explanation brandy❤
so will the interest be calculated on basis of the discounted price? or will i be receiving interest based on the face value price, in this case 1000$?
The CASH received is based on the face value but the interest recorded for accounting is recorded based on the discounted price. I have a bonds payable video that goes through the accounting:)
@@BrandyDudas thanks, much appreciated.
very helpful, using money and actual bond prices to show loss helped way more then everywhere else i've search that keeps using terms i don't know to explain something i'm confused on with out using numbers
the mic noice is very distracting
nice video but hope you got a new mic
I did! New video coming soon with an upgraded mic :)
@@BrandyDudas will be waiting, send me the link once you do
liked subbed n notified
nice video! also, you should get a new mic.
thank you
put the mic closer to your mouth, I could almost hear words
Such good explanation. such bad audio
thanks !
get a better mic please