So if I've got this correct the bond price is not affected by risk? If we discount the cash flow of a bond with the risk free rate we will be estimated to get the risk free rate of return on that bond. Why would one buy a bond instead of just putting the money in the bank (or more secure investments)?
So if I've got this correct the bond price is not affected by risk? If we discount the cash flow of a bond with the risk free rate we will be estimated to get the risk free rate of return on that bond. Why would one buy a bond instead of just putting the money in the bank (or more secure investments)?
MatteNoob 10 months ago
Thanks a lot. Great video.
srichin1234 3 years ago