Thanks! I love how you didnt take 5 minutes to explain who you were, what you were doing , what country your from, what school you went to, all that bla bla bla lol straight to the point! great video wish all videos were like this!
Finally! So simple. Thank you! Other explanations always seemed to miss out the vital distinction between the bond's interest rate and the economy's parallel interest rate. Well now I know! Duly subscribed.
I know I'm late but I'm confused on one aspect. From an INVESTORS stand point who already owns a bond, why would you sell your bond when interest rates go up? Shouldn't you keep it as you're already earning a coupon rate?
Thank you liked and subscribed, question. What would make me want to sell my bond besides to obvious dropping in price. I'm learning to diversify my investments by dollar cost averaging and averaging out the risk among them. I've learned to sell them when their doing good but what would make me want to sell if I'm told to stay in the game?
Thanks for the video. So with that logic - for example, you want to buy a bond for 5 years, is it possible to determine how much the interest rates will rise in 5 years, then buy a bond that offers a coupon rate above your estimated rate? (Accounting for inflation and tax). So that regardless whether interest rates fall or rise, you'll still profit?
But lowering the face value of the bond will make it even less attractive. FE: 10000(par) with 10% = 1000(ann. interest) and 1000(par) with 10% = 100(ann. interest). Or can it be that the coupon is still paid based on the par value bond was initially issued with? Thank you for the video! Subscribed.
Thanks so much for the vid. Very relevant information in today's economy. Question: does the Fed raising rates affect corporate bond prices? Mortgage rates? Or is that separate? Thanks again.
do you have a video of different companies that sells corporate bond with high interest per year and the lock-in time frame? and also how about government?
Bond is more like public organization like federal or city bond while the corporate are in stocks or CD or mural fund . And they lower bond price to encourage public funding from private fund gaining footing as interest rate hike
How do you find exactly how much you need to sell it for (how do you find the current par value of the bond when the market value in lower and above your interest rate?)
I still don’t get it 😔. If you get a bond with 10% interest on your principle investment, isn’t that rate locked in? Therefore, why does it matter if others buy at a better interest rate at a later date? You still get the money you had expected right? Thanks in advance....
why would the price matter if you hold to maturity anyway. youll still be getting face value. I get if you wanted to sell it but the money your making in interest initially when purchased wont change from my understanding. so your payout will be the same regardless of interest rates. Rate changes just seem like a hypothetical better situations for example if rates rise to 15% and your making 10% obviously the 15% would be better but if you plan on holding till maturity nothing should change in the money that gets returned am i correct? trying to grasp the concept
So it's about the price of already issued bonds only in the market and not all the bonds which includes newly issued bonds I am confused about this thing
I really don't understand why teachers/professors cant take a minute to make this explanation and keep on jabbering about changes that students can't even understand. Thank you for this!!
Interest rate/ Inflation increase, new bond price will increase, current bond will have lesser demand, hence decreasing the current bond value. However, when interest rate/ inflation decrease, new bond price will decrease, current bond will have higher demand, hence increasing the current bond value.
Finally some one explained this thing crystal clear!
Yeah!
These were the best almost 3 minutes of my life that helped me visualize and understand this subject. Thank you!
This is so amazing! My macroeconomics prof could never explain this so easily and within less than three minutes
Now THAT is how you explain it simply and quickly [and memorably]. THANK YOU!!
Great work. Thank you for explaining it clearly, concisely, and not dragging it out into a 10+ minute video.
Thanks! I love how you didnt take 5 minutes to explain who you were, what you were doing , what country your from, what school you went to, all that bla bla bla lol straight to the point! great video wish all videos were like this!
This is better and clearer than 3hrs of economic lecture
Thank youuuu for making this video, its helping me to find the logic behind all this... short yettt so informative 👍🏻👍🏻👍🏻
I have checked around 15 videos to understand this concept..and finally got this video
Thank you so much for this video! I had such a hard time understanding this concept but after watching this video, I finally understand it !!!!!!!
This is so great, especially for students who need to hear it again. They can just rewind. Great teacher. Thanks.
you will make us fall in love with your channel! amazing job
Finally! So simple. Thank you! Other explanations always seemed to miss out the vital distinction between the bond's interest rate and the economy's parallel interest rate. Well now I know! Duly subscribed.
To be honest 😅 I never had this clarity, best 3 minutes video ever❤ subscribed you mate
Nobody never explained it to me so clearly!!! Thank you
The best video I found. THANK YOU.
thanks, i was confused about this, and you made it very simple to understand, thanks man!
3 minutes helped me understand a subject that I did not understand for 7 weeks in college. Thank you so much.
This video was too the point! Yes, I wish all of youtuber's created videos like this. He wasted no time! Excellent!
Very clear and simple! Thank you!
Simple and fast! Bravo!
Thanks. Clear-cut explanation! Very helpful.
Excellent explanation ! Short and simple.
Best video on this yet - thanks
Hey Mr. Willis this is great content.
I know I'm late but I'm confused on one aspect. From an INVESTORS stand point who already owns a bond, why would you sell your bond when interest rates go up? Shouldn't you keep it as you're already earning a coupon rate?
What an excellent video!! Thanks so much!
Lol, thanks man. Really cut to the chase and told me exactly what i needed to know.
Thank you 4 that quick lesson under 5 minutes.
Great and simple explanation... ❤️❤️👍👍
Thank You! Awesome presentation!
Finally, a simple explanation to this...thank you
Really good, well-explained video sir.
Such a clear explanation, thank you
Great work dear..
U explained simply a complicated matter.
Fantastic video hardly 3 minutes learnt it. Unlike most of the videos 10-15 minutes and difficult in understanding
Thank you so much, I was struggling to understand... until I watched your video
Extremely helpful, thank you!
Awesome - very clearly explained, thank you Sir!
Best explaination so far.
man i never subscribed any channel
but he made me subscribe this one
Your explanation is really good .
Nicely done
Really helpful video, Thank you!
Short and very clear. Thank you
Thank you! This was so helpful!
Awesome 👍
Very productive video
Very well done!
amazing video!!!
Finally get it, thanks man!!!
Super explanation - thanks!
Precise and concise, thank you
Too much helpful. Thanks 🖤
great explanation, thank you
Thanks man for saving my paper as well as time 👍🖤🖤🖤
You are the goat Mr. Willis
No Michael, you are the 🐐
cracking video!!
Legendary stuff man! I will send the link to my lecturer😪
Very nice video thank you.
Thank you this was very helpful and informative 👍👍
very well explained. thanks :)
You made this thing so simple
thank you sooo much this video help me a lot
Well explained❤❤❤
Thank you liked and subscribed, question. What would make me want to sell my bond besides to obvious dropping in price. I'm learning to diversify my investments by dollar cost averaging and averaging out the risk among them. I've learned to sell them when their doing good but what would make me want to sell if I'm told to stay in the game?
Awesome
Damn you are good! Thank you!
Fanfuckingtastic, this video explained what I wanted to know for some time in shortest possible presentation.
very nicely explained
Thank you for sharing your wisdom bald man
THANK YOU, MAN!!
thankyou god bless you
well done
Very well explained. I had a question, when you mention "interest rates" do you mean the current Fed Funds Rate?
Awesome !
Thanks for the video. So with that logic - for example, you want to buy a bond for 5 years, is it possible to determine how much the interest rates will rise in 5 years, then buy a bond that offers a coupon rate above your estimated rate? (Accounting for inflation and tax). So that regardless whether interest rates fall or rise, you'll still profit?
When selling the 10% bond once the interest rate rises to 15%, how did you calculate the selling price of the bond to be $8,000?
Nice explanation thank you
Finally understood, that khana academy sometimes become crap.
But lowering the face value of the bond will make it even less attractive. FE: 10000(par) with 10% = 1000(ann. interest) and 1000(par) with 10% = 100(ann. interest). Or can it be that the coupon is still paid based on the par value bond was initially issued with?
Thank you for the video! Subscribed.
Great content. I would just eliminate the "guaranteed". Nothing is guaranteed when investing.
Thanks so much for the vid. Very relevant information in today's economy. Question: does the Fed raising rates affect corporate bond prices? Mortgage rates? Or is that separate? Thanks again.
do you have a video of different companies that sells corporate bond with high interest per year and the lock-in time frame? and also how about government?
Bond is more like public organization like federal or city bond while the corporate are in stocks or CD or mural fund . And they lower bond price to encourage public funding from private fund gaining footing as interest rate hike
thank!
You’re very welcome!
On the price change of the bond due to different interest rate, did you make it up, or through some profound calculation?
How do you find exactly how much you need to sell it for (how do you find the current par value of the bond when the market value in lower and above your interest rate?)
👍🏼👍🏼👍🏼
What if you have bond funds and you plan to keep it for several years especially now that rates are going up for sure
This is the way we should be taught rather than teaching those long paragraphs having no correlation at all. 🙏
I still don’t get it 😔. If you get a bond with 10% interest on your principle investment, isn’t that rate locked in? Therefore, why does it matter if others buy at a better interest rate at a later date? You still get the money you had expected right? Thanks in advance....
What happens to Quantity supplied when Interest rates go up?
If a 10 year bond cost $125, do I get $100 back in 10 years or $125? I've never seen that question answered anywhere.
why would the price matter if you hold to maturity anyway. youll still be getting face value. I get if you wanted to sell it but the money your making in interest initially when purchased wont change from my understanding. so your payout will be the same regardless of interest rates. Rate changes just seem like a hypothetical better situations for example if rates rise to 15% and your making 10% obviously the 15% would be better but if you plan on holding till maturity nothing should change in the money that gets returned am i correct? trying to grasp the concept
So it's about the price of already issued bonds only in the market and not all the bonds which includes newly issued bonds
I am confused about this thing
I really don't understand why teachers/professors cant take a minute to make this explanation and keep on jabbering about changes that students can't even understand. Thank you for this!!
Do you still get your 10 grand back at the end of the 10 years either way
I love you
Interest rate/ Inflation increase, new bond price will increase, current bond will have lesser demand, hence decreasing the current bond value.
However, when interest rate/ inflation decrease, new bond price will decrease, current bond will have higher demand, hence increasing the current bond value.