Relationship between bond prices and interest rates | Finance & Capital Markets | Khan Academy

Don't talked about relationship different way talking about my business enterprise, , I'm not plaeyer, I'm owner business enterprise , ..
Steal my name accounts business enterprise must be pay off the total amount due is 2000 times of the $540 billion trillion dollars UK and deaths ...f

赔偿责任与罚款规则,死刑于法律。每个人有每个人的名字和出生不同,为什么你们一定要位置借口,搬走我的帳号,我的名字帐号都说不是我,说是你们？何有此理。

Sal for President

Hello Khan my old friend

does this explain the YTM formula ?

thank you so much for this one

Explained very well. Thank you.

Can somebody explain when he said the price for someone willing to pay for 10% return is present value of $1000 discounted by 10%. Why do we need to discount 10%?

If i have a teacher like you i never feel finance is difficult from nepal😭😭😭😭🇳🇵🇳🇵🇳🇵

It did thank you

Great video! Thanks! Is there a place where you could see bond prices?

i have an exam in acct intermediate 2 tomorrow and i think this video just saved me LOL thank u Sal

the best

This explanation is a God sent explanation. Well done!

This video is a gem!

why did you take simple interest into account in the first example, but when explaining zero coupon you used compound interest? Can anyone explain?

Thank u

Quantitive easing makes sense now. Buying bonds increases their value thus bringing down the yield!

Nobodies going to talk about his writing with a mouse is better than an average persons writing with pencil on paper?

Excellent!

Thank you... I came here because of SVB... And now I understand😁👍

Amazingly well done.

SVB brought me here

Who’s here because of SVB?

Thanks for explaining the SVB issue 9 years ago. Makes sense

I wish the CEO of Silicon valley bank saw this! 🤔

Is there a way to calculate what that bond price would be if the interest rate rises or falls.?

Ohh so this is what happened to SVB, I believe.. :D

Why would someone sell their bonds if interest rates go up? Like I understand the other bonds give more interest, but why not just take the L and/or save up and buy the higher interest bond later?

who came after silicon valley bank event 👇

wished Silicon Valley Bank (SVB) watched this

Boom! Thanks. I now know more about economics than Janet Yellen!

I'm coming back to this again, SVB collapsed, the banking system is falling into severe crisis. And it's because of raising of interest rates by federal reserve, which increased bond yields, lowered prices. SVB needed cash because much more withdrawal was taking place, because the companies who bank there didn't have as much access to cheap credit, so had to tap into cash. SVB didn't have enough cash. Tried to raise cash by selling its treasury bond assets, but sold them at a huge loss, because they don't catch the same price on the market as when SVB bought those bonds. The price is lower, because federal reserve has been raising interest rates. Why? Because inflation is too high. Why? Because of quantitative easing and low interest rates for so long. Why? Because that was the only way to keep the economy going after the 2008 crash.




Capitalism is at a dead-end.

SVB brought me here.

I remember the confusion when I watched this 2yrs ago. For those of you wondering how bonds prices are going down, take a step back.*
The price of OLD, PREVIOUSLY ISSUED bonds (10%) will go down as interest rates go up. Those bonds do not simply disappear. They remain in circulation.
The price of NEW, FRESHLY ISSUED bonds will have the 15% interest (coupon) attached.

Sal explains it in a way that he expects viewers to understand that slight nuance. He really tried to break it down for beginners but he's so advanced that he overlooked this minor nuance in wording. Think of this in the form of cars being sold. Why would you buy my used 2022 Toyota for $23k w/ 25000 miles on it. (Miles being the allusion to interest rate) When you can buy a new 2022 Toyota Camry for $23k w/0 miles on it? The new car is simply a better deal. In the same manner, the newly issued bonds paying a higher interest are simply the better deal. That means I would have to lower the price of my car in order to sell it you if I wanted to compete. Likewise, the previously issued bonds owner would have to lower their price if they wanted to sell it.

Sometimes the wording can be confusing to beginners. I'm rewatching some videos atm and will leave these little explanations where I believe they can do some good. (Thur Mar 9, 2023)

The Federal Reserve's intention to raise interest rates until inflation is under control is still viewed with skepticism by the markets, even if bond yields are rising while stock prices are falling. What is the best approach to profit from the current down market while I'm still considering whether to sell the $401,000 worth of stocks I own?

Kahn is great and Sal is a good man

Loved this♥️

Why we switched from fixed interest rate to a compound interest rate in the middle of the video?

In stocks and bonds section, could someone tell me in which order i have to watch these videos because videos are not in chrnological order. THANKS IN ADVANCE

wish you would help with the word "yield" somewhere, cause everyone uses that term as having a meaning, given me not having an understanding that should be known like bonds includes t bills. YIELD is a term most heard but not talked about, secondary market is another term not used, but assumed, basics should not start with calculus

The calculations you are showing is essentially Present Value calculation right?

The Common Sense Glass Steagall Act and Pre-1997 Strict Banking Regulations are to be Reinstated to prevent the racketeering of mortgage Ponzi schemes.

there is a special place in haven for you XD

imf/nato wealth theft taxation currency is quite the subject to study! Article 1 Section 10

good explanation but your math could have been simpler for noobs lol