Finance Theory — 4.5: Bond Valuation скачать в хорошем качестве

Finance Theory — 4.5: Bond Valuation

In 2022, investors holding "safe" U.S. Treasury bonds lost over 12%—their worst year in decades. How can something "risk-free" lose money? This video reveals one of the most important relationships in finance: the inverse relationship between bond prices and interest rates. You'll learn to value any bond yourself using time value of money principles. 📚 Key concepts covered: • Bond valuation as time value of money applied to fixed, known cash flows • Why bond prices move opposite to interest rates (it's mechanical, not mysterious) • Coupon bonds vs. pure discount bonds—different arrangements of the same principle • How STRIPS decompose coupon bonds into individual discount bonds • The pricing formula P = F/(1+r)^t and how to use it • Reading bond prices as market forecasts of future interest rates ═══════════════════════════════════════ 📖 ORIGINAL SOURCE This video distills concepts from academic finance lectures on fixed income securities. Source:    • Ses 4: Present Value Relations III & Fixed...   All credit for the original educational content belongs to the original creator. This video aims to make these important concepts more accessible through condensed presentation.