8. Value a Bond and Calculate Yield to Maturity (YTM)
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- Опубліковано 25 кві 2012
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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.
Let no one tell you otherwise, you know how to lecture and make it very easy to understanding this important subject. Thank you, Preston Pysh.
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
Online University is tough, this is very helpful thank you
Dude, I’ve been trying to get this concept through my brain for the past hour and this is literally the only thing that broke it down in a simple and understandable way. Thanks
Just rediscovered your tutorials Preston now that I'm taking another finance course at university. You have a fantastic way of explaining these concepts in a simple, yet thorough manner. Thank you!
Preston, Just started watching your videos and want to let you know that you are a great teacher. Thank you.
Love that jazz background man! You just created the perfect aura, the perfect marriage between music and math. All professors should implement your method, go ahead make those big bucks! write a book on the subject.
Bravo! Finally someone who is able to teach. I immediately understood your explanations. If only there were more good teachers around, finance would be easier to grasp. Keep up the good work!
Very nicely explained, well done, majority of the videos tend to make it more complicated, but this video explains it perfectly. Thanks Preston !
Finally figured out what YTM is from this video. Thank you very much, Preston!
Great work mate. Thanks for all your free wisdom. I’m sure these videos will make many much better off. Which theoretically makes you a philanthropist 🙂✌🏼
Great great summary and full of understanding I will shared with my friends thanks
This is the best BOND video ever ! Thank you for clarifying YTM :):)
Love your videos. So simple and easy to understand. Thanks!!
This is excellent! You're doing great work for humanity!
So far I think that you are the best. teacher of this stock stuff that I have found on the Web. Others come close, many others are good....but this is great
These 3 videos taught me Bonds well!!
Thank you very much for sharing this valuable knowledge with us.
love your site and your book thanks so much for making it so simple
Neatly explained. Thanks Preston. Been struggling to understand the difference.