Learn Business English Economics 150 (Yield Curve, short long rates)

[Khitzer]

Teacher, what is a learning curve?? Can you please explain??

[raphtubeful]

If i take a long term bound and I want to cancel it to get the money back is it possible? If yes any fees involved?

[TeacherPhilEnglish]

@raphtubeful No, you must either sell it or wait for maturity.

[raphtubeful]

@TeacherPhilEnglish Lets say i bought a bond for 100 dollars 5% Yield for 10 years and i want to sell do you think i can get 95 dollars from it?

[TeacherPhilEnglish]

@raphtubeful Whatever the 'bid price' on the bond is the price you get for that time. Maybe tomorrow the bid changes.

[raphtubeful]

@TeacherPhilEnglish Where can i buy or sell bounds ? by bidding.

[TeacherPhilEnglish]

@raphtubeful Depends on who issues the bonds. In Canada the government sometimes allows you to sell them back to them. In the US I think only big banks and companies can buy and sell government bonds. I've never tried to trade these bonds.

[raphtubeful]

@TeacherPhilEnglish so that means i cannot buy or sell from another person?

[TeacherPhilEnglish]

@raphtubeful Yes you can. I don't know if you can buy and sell bonds with an online broker. If you can't, you would have to either have a paper certificate and make a contract to sell it to a person or you could transfer the bond to their account. But the SEC has rules against private distribution of securities without a broker so I'm not sure if you could do it.

[raphtubeful]

@TeacherPhilEnglish got it thanx

[TeacherPhilEnglish]

usually the yield curve is shown all the way to the 30-year bond.