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Interest Rates on Discount Bonds

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Uploaded by on Nov 16, 2008

I show how the bond price and the interest rate are inversely related.

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Education

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Standard YouTube License

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  • i'm interested to know if bonds are issued at a discount or only sold in a secondary market at a discount. one point that you brought up which i haven't seen elsewhere is that the selling price or the interest rate of discount bonds can be an indicator of the public's confidence of the issuing entity, or the health of the issuing entity. does this play into credit ratings for companies or governments that originally issued these bonds? thanks.

  • FANTASTIC

  • Very nice

  • Tnkz For Saving My Ass..! :-)

    Good Explanation

  • How does the length of money market maturities relate to the interest rate paid by 30 year treasuries?

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