What is a Bond? | Finance in 5 Minutes скачать в хорошем качестве

What is a Bond? | Finance in 5 Minutes

A bond is essentially a loan you make to a government or corporation, making you the lender who earns interest payments over time. When you buy a bond, you're purchasing debt and becoming a fixed-income investor who receives regular coupon payments until maturity. In this episode of Finance in 5 Minutes, we break down everything you need to know about bonds: 📋 Bond Basics: • Face value (par value) - the principal you receive at maturity • Coupon rate - your annual interest payment • Maturity period - when your loan expires 🏛️ Types of Bond Issuers: • Treasuries (U.S. federal government) • Municipal bonds (states, cities, counties) • Corporate bonds (companies) ⚖️ Risk vs. Reward: • Investment-grade bonds (AAA) offer stability with lower returns • High-yield/junk bonds offer higher interest but greater risk 📈 Key Concepts Explained: • The inverse relationship between bond prices and interest rates • Yield to Maturity (YTM) - your true return • Duration and interest rate sensitivity • Bond varieties: zero-coupon, callable, putable, and convertible Whether you're comparing individual bonds to bond funds/ETFs or weighing stocks versus bonds in your portfolio, this visual guide gives you the foundation to make informed investment decisions. This video is part of the "Finance in 5 Minutes: Money Terms Explained" series, designed to make complex financial concepts accessible to everyone. 👉 Subscribe for more money terms explained simply! #FinanceIn5Minutes #MoneyTermsExplained #Bonds #FixedIncome #Investing #PersonalFinance #FinancialLiteracy #InvestmentBasics #BondMarket #YieldToMaturity