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Bonds - Par Value and more

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Bonds - Par Value and more
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Text Comments (7)
ashwani kumar (19 days ago)
What about interest at the end on par value. Change ur way of teaching
Tin Nguyen (1 month ago)
Thank you so much for sharing such useful data. Greatly appreciated!
Nikita Singh (7 months ago)
lost you after discount bond price....
love the truth (1 year ago)
51MontyPython (3 years ago)
Hi, very good good video.  Thank you so much.  I have a question.  Do I understand correctly, that if I own a bond that I have purchased, say, from corporation X, and I then sell this bond, it is still corporation X (the original issuer) who is indebted to the new holder of the bond, and not I the seller?  In other words, I might take a gain or loss in selling it, but, I lose only the the difference in my original purchase and selling price plus the interest I have earned in the meantime?  So that the issuer (corporation X) still has the initial money I paid, only now I am simply getting either more or less compensation for it based on the price I sell it for plus the amount of interest I have earned in the meantime? And if I've understood correctly so far, say I originally purchased a 5 year bond, and received half of the interest payments in the 1st 2/12 years, does this mean that the buyer will only receive interest payments on that bond for the remaining 2 1/2 years? And one last question, if I may, considering all the above is correct, would the new buyer of that bond (the one I sold it to) receive the same interest payments, i.e. the equivalent of the original coupon %antage on the face/par value, irrespective of any price changes?    Would be much obliged if you can confirm or correct my understanding thus far.  Thanks again.
Andreas Koch (4 years ago)
thanks for the video! To your last step where you're calculating the effecitve interest rate: you are calculating (1 + 0.05263)^2 - 1. but by doing so you are compounding the interest rate.This would mean that you, as you said, directly reinvest your semi annual interest income. But is this calculation practically relevant? For example, if I just bought one certificate of this bond, the interest rate wouldn't be high enough to buy a second bond certificate. So, for me as investor the annual rate without compounding would be much more relevant, wouldn't it?
Maher Mahmoud (5 years ago)
احترم خطك الفشيخ

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