How Bonds Work | Personal Finance Series

[@joshuamartin2605]

This is exactly what I read in my textbook and is a sound way to review such subject matter.

[@JJ-es8pd]

Our professor recommend us to watch your videos, and they are indeed really useful:)

[@Alanisbusinessacademy]

Thanks Joanna! What class are you taking? Be sure to communicate my thanks to your professor.

[@JJ-es8pd]

I am studying Economics and Business Economics, currently i am taking Corporate Finance, it is really interesting course and i usually go though your videos again when i still have confusion after lecture:) Sure, i will! Success!

[@Alanisbusinessacademy]

That's great! Best of luck with your studies. I'm sure you're going to do great.

[@simplycax]

I appreciate this clear cut video! Thanks :)

[@Alanisbusinessacademy]

You're welcome Jean Selvon! Glad you enjoyed it.

[@Bryanswrld]

Good work, much easier to understand than what they teach at school lol

[@Alanisbusinessacademy]

Awesome! Glad I could help.

[@jamesmonroe2278]

very comprehensive indeed! thank you!

[@moorerm6940]

Thanks dude, all clear and explicit :)

[@Alanisbusinessacademy]

Roman Marinciuc You're very welcome. Glad it was.

[@OM-mu1qt]

Great video....thank you!

[@vloggingwithhussain565]

It was much easier for me to get understand and how business runs systematically and uh juzz given an inspiration and oppurtinity of businesa .Thanks a lot to help me and plzz make sure uh going to intimate ur next episode plzz this is my humble request for uh .appericiate

[@diablo_rosso]

you sir helped me get a A+..thankyou

[@Alanisbusinessacademy]

Devansh Besain That's awesome! Glad I could help.

[@andihoxha6766]

Very helpfully! Thanks

[@Alanisbusinessacademy]

Andi hoxha You're welcome. Thanks for watching.

[@Msloirinha2002]

thank you!

[@densen6029]

Hello Alanis Business Academy. Pleaseee please can you explain this to me, how does interest rate affect bond prices and why? Also I am very confused, if prevailing interest rate changes does that mean the par value changes for the bond holder.

[@Alanisbusinessacademy]

den sen Hi there! The par value stays the same regardless of the interest rate, however the market value (price of bond on secondary markets) can change. The par value is agreed upon when the bond is purchased, but the market value fluctuates based on a variety of factors (economy, fed interest rates, etc) Interest rate affect bond prices as there is an inverse relationship between bond prices and bond yields (interest rate of bonds). So if the interest rates paid on bonds increases the market price of zero-coupon bonds (bonds that don't may interest) will decrease to compensate. This provides a consistent level of return, otherwise zero coupon bonds wouldn't be an attractive investment. Hope this helps, and if it does please subscribe.

[@omarkhaledyousry]

Thank you Very Much

[@Alanisbusinessacademy]

You're welcome Omar!

[@gregborodin2768]

Current yield was not clear. The rest was good.