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Delving into bond yields and prices

johnNjohnN
edited December 2018 in The OT Bullpen
https://www.fxstreet.com/analysis/delving-into-bond-yields-and-prices-201812051535

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ANALYSIS | Dec 05, 15:35 GMT
Delving into Bond Yields and Prices
Dr. Nektarios Michail Dr. Nektarios Michail
HotForex
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Put simply, bonds are really the certificates a government, or any private corporation, issues as proof that they have borrowed from you. In other words, investing in a US government bond means that you have lent the US government money. For example, a $1000 bond from the US government suggests that it owes you $1000 and is due to pay them at a pre-specified period of time. This pre-specified period is called the bond’s maturity. As such, when we specify that a bond has a 5-year maturity it means that the said bond is due to be repaid in 5 years from now.
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