This cleared everything for me. I thought that the coupon rate and yield was the same thing, but now I understand that they are not. They just correlate. Thank you so much!
While this video is correct, the understanding of the inverse relationship is better described by showing how prevailing interest rates effect the PRICE rather than how price effects the yield. It’s the interest rate that drive the price, not the other way around. Also how price is affected by the term left on the bond for the total yield.
These videos have been so helpful in my understanding how to build a new money system merging gold and silver with nfts and cryptocurency for a completely decentralised autonomous system owned by the people and not the central bankers.
I understood the fact that bon prices and yield are inversly related however isnt Bond prices calculated based on bonds that are already trading with similar yields, coupon rate, maturity and Credit Rating based on Matrix Pricing. However my questions is how does the price of those bonds change? Is it based on the interest rate?
Thanks for the analysis! I need some advice: My OKX wallet holds some USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?
So if you are investing long term and have 10% of your portfolio in bonds. Should you buy more bonds when interest rates are high or low? Like when stocks are down buy the dip. Does this apply to bonds?
You make wonderful videos! 👏 I have a quick question: 🤷♂️ I have these words 🤨. (behave today finger ski upon boy assault summer exhaust beauty stereo over). What is this? 🤔
Interesting facts however, if I purchase bond fund, and interest rate goes up, the fund price increases too. Cos fund company will use the new capital from investor or expired bond to purchase new bond which leads to higher returns from higher interest paid by bond.
The formula to calculate the bond yield is wrong did anyone actually did the math? 900÷50=18 how tf did he get 5.5 The real formula to calculate bond yields Coupon ________. × 100 Bond price Example 50. 5000 ___ × 100 = _____ = 5.56% 900. 900
This cleared everything for me. I thought that the coupon rate and yield was the same thing, but now I understand that they are not. They just correlate. Thank you so much!
This is the best explanation of Bond Yield and Price Ive seen.
Finally, someone speaks human language! Thank you so much! Finally understood the relationship
This was really informative and well explained. It helped clear my concept!
Say hello to your new subscriber...finally a crystal-clear explanation!
While this video is correct, the understanding of the inverse relationship is better described by showing how prevailing interest rates effect the PRICE rather than how price effects the yield. It’s the interest rate that drive the price, not the other way around. Also how price is affected by the term left on the bond for the total yield.
Excellent video and lesson! Thank you Prof. King!
It was clearly well explained. Thanks you, sir!
Great, great video. I was looking for a quick way to memorize this, thanks so much.
Crisp explanation. Thank you ☺️
What a wonderful video!
Clear, concise, to the point!
Great work KINGCADMEY!
Very clear explanation, thanks Man!
really understandable 😇😇 im struggle with this YTM for the last 2 days, tysm for this video ❤❤
Very helpful, such a simple thing, but took me some time to wrap my head around it, thank you!!
cleared my years of doubt, thanks alot
Finally learn this Bond Prices Vs Bond Yield | Inverse Relationship.. Thanks to KingAdemy
Amazing Channel with very informative videos 🙌
Best explanation . Nice
Best explanation 🎉🎉
These videos have been so helpful in my understanding how to build a new money system merging gold and silver with nfts and cryptocurency for a completely decentralised autonomous system owned by the people and not the central bankers.
Great video.
Glad you enjoyed it Tom
I'd love to see that vid abt how bond prices fluctuate with interest rate
Lucidly explained 👍🙏
Excellent
Great video
Thank you
Well explained.
Why the hell do they call it coupon and not just interest rate?
Would love more videos in the future!
I understood the fact that bon prices and yield are inversly related however isnt Bond prices calculated based on bonds that are already trading with similar yields, coupon rate, maturity and Credit Rating based on Matrix Pricing. However my questions is how does the price of those bonds change? Is it based on the interest rate?
Thanks for the analysis! I need some advice: My OKX wallet holds some USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?
Nice job, mate. Cheers.
Sir please which software your using. Please i will be so happy if you tell me
So if you are investing long term and have 10% of your portfolio in bonds. Should you buy more bonds when interest rates are high or low? Like when stocks are down buy the dip. Does this apply to bonds?
Hey bro, Awesome stuff. Could you make a video explaining interest rate differentials ?
So when you buy that bond for 900 the yield and coupon are still based on the initial 1000 pounds?
Yield is based on the price, not the face-value. Coupon remains the same no matter what the price is when it sells.
Please can you talk about zero coupon bonds and how to calculate duration
🥰🥰 thank you for your lessons
Perfect
Is interest rate and yield same?
What happens as internet rates fluctuate
You make wonderful videos! 👏 I have a quick question: 🤷♂️ I have these words 🤨. (behave today finger ski upon boy assault summer exhaust beauty stereo over). What is this? 🤔
so basically the Coupon Rate or Interest Rate and the Yield is the same thing?
No if interest rates increase it will decrease bond value which increases yield
All fine and good, but I'm pretty sure the titles are mixed up here. A lender is the giver and the borrower is the taker.
Nah they got it right, the lender is the giver (of cash), and the borrower is the taker (of cash). It's in relation to the cash, not the bond
Thanks mate
Thank you
THANKYOU!!!
So basically Bond prices going DOWN is a good thing? hence the Yield goes UP
that seemed simple enough
The problem with this explanation is yield leads to changes in price not the other way around.
Interesting facts however, if I purchase bond fund, and interest rate goes up, the fund price increases too. Cos fund company will use the new capital from investor or expired bond to purchase new bond which leads to higher returns from higher interest paid by bond.
The formula to calculate the bond yield is wrong did anyone actually did the math?
900÷50=18 how tf did he get 5.5
The real formula to calculate bond yields
Coupon
________. × 100
Bond price
Example
50. 5000
___ × 100 = _____ = 5.56%
900. 900
We need more videos in finance, please keep going, 19 videos is not enough 🥲
Fact 😢