Thank you, Professor. I have gained a thorough understanding of the material I sought to learn. It's very clear. I would be grateful if you could continue to guide and teach us with your invaluable expertise.

Just a question, Wt about standard deduction?

Hello Professor Ikram, if you to the following using the first example it won't work and I can' t figure out why. I know the answer by summing the present value of the principle and the present value of the interest. The answer is $5,218,801 but I am really bothered as to why the first function (PV) works on your example and not for this example unless you do it once for the principle and another time for the interest. You got the answer with just one prompt. Any thoughts would be appreciated. Thank you for all that you do! The question: Company issues $5,000,000, 6%, 5-year bonds dated January 1, 2018 on January 1, 2018. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue?

Thank you for the well-instructed video

Wow. A no frills, concise, well constructed video. Thank you.

Very helpful

Wonderfully explained

Deferred present value annuity ?

Great Work Sir

Great video!!

great explanation. thank you very much.

Thank you so much for this immensely useful information, sir. Hoping for more of these kind of videos in the future🤞🤞Love from India❣❣

great

Ok this terminology is really confusing me about interest rates. You said at the start of the video "interest rates/yields". And you have maintained that. So interest rate is a different concept and yield is a different concept. In fact, here the yield is yield to maturity. You are saying that when an investor's required rate of return goes down, the interest rate (amount of returns) a bond gives goes down as well, which is confusing. Are you saying that because the investor's required rate of return goes down, the price of the bond goes up, so when you reinvest, you have to spend more money to purchase a new bond and so the returns you get will not be high enough because of the increased purchase price? Or is there something else that just makes people issue lower coupon payment bonds because of lower yield to maturity somehow?

So basically current yield is the return that the investment actually makes in a year. And yield to maturity is the investor's required rate of return. And current yield will keep reducing to ultimately match yield to maturity because an above-par bond price will move downwards towards par thanks to market correction. Alright, let's see if I can understand reinvestment risk now.

Hopefully this lets me understand your interest rate risk and reinvestment risk video now. I didn't think in the direction of bond prices which was helpful. But I keep getting confused in current yield and yield to maturity. And then people start saying stuff like interest rate went up and I start thinking about bank interest rates going up instead of an investor's required rate of return. My mind is a mess right now lol. Edit: Wait you have a video on that too what the heck. Actual life saver.

4:00 if the odds of the unexpected gain equal the odds of the unexpected loss and the amounts are the same(40k each), shouldn't they cancel each other and still net you the original 320K expected?

Thank you so much

Thanks for easy explanation!

Thank you for this video! But I keep getting stuck at the EBIT(1+t) calculations. Could you kindly send me the link to the video where you explained this

Excellent explanation - thanks

Thank you Professor Ikram! Very helpful and easy to follow.

Hello, excellent video as always!!! I have one question. In the end where we find that, when we sell after 1 year, our return is 4,92%...does that mean we would NOT want to sell? For the reason that if we held the bond to maturity we would have 5,32% > 4,92% ???

Thank you so much for your clarification

Question. So does this include the standard deduction? For example if the taxes owed are 33000 would I then subtract the standardized deduction for whatever that year is? 33000-14000 for example would be 19000 left over that I would actually owe?

Quality work as always, Professor!

Thank you🙌

Thanks so much, I was doing but I couldn't find the formula for the last tax rate, thanks a lot!

Thank you!

great stuff

Soo good!

thank you keep posting. you have a special talent for explaining!!

Thank you so much sir!! I’m self learning for Cfa exam being a non finance major - your videos are incredibly helpful!! Please keep sharing valuable knowledge!

Amazing sir thank you!!!

Thank you so much! You are breaking the concepr down in a much more understandable way!!

1:00

Don't let this setback define your trading journey. Keep working hard and striving for success.

Great job

Great video, well explained!

How do you start it to look similar to that I'm currently studying npv in school

Keep up the great work Professor! You’ve been super consistent with uploading 👍🏼🥳

Incredible and very good explanation. Great teacher! :-)

Thank you for this! How about when the annuity actually grows? How do we introduce the growth rate to this calculation?

at 1:57 could you please tell by which formula you arrived at 24,761.90 value?

2:00

Better than the rest🎉🎉

I hate knowing im missing something but the step by step instructions you give tells me ppl like you are missing from the world and we need more people like you thank you.

Excellent and clear explanation! Thanks!

Great video !!!

For bonds paying semi annually, can we consider the discount rate as 10% and coupon rate as 80 while considering the maturity as 7 years? will that make any difference while calculating.