This guy is brillant, he is much better than my teacher.
@Asyphinix
5 жыл бұрын
YO DAL, ur bond is about to mature it's almost 2020. Is there gonna be a party?
@aris6510
4 жыл бұрын
its matured
@TMIKEZY
4 жыл бұрын
ye the global economy collapsed what a year 😂
@hughmcclements7589
5 жыл бұрын
5:42 But Dal, the real question is; Which is heavier, a kilogram of carrots or a kilogram of steel?
@Manny2cute
9 жыл бұрын
Why does the yield affect how expensive or cheap the cost of borrowing is to the government? The government are only paying the coupon and the nominal value back, both of which are fixed, so I would've thought their cost of borrowing is fixed regardless? Could you please explain this? Thank you!
@samuelgreenrod1812
5 жыл бұрын
Okay so the government can issue a bond to pay for infrastructure but must pay interest on that bond to the bondholder. Bondholders can trade the bonds for the market price and the value of the bond determines the interest that the government must offer to maintain buyers. Therefore, if for example many bonds are issued to pay for state services or if the risk of defaulting on the loan increases, the value of the bond will decrease and so more interest will be required to maintain buyers. And this will increase the risk of defaulting. Did I get this right or can anyone correct me if I got it wrong? Cheers
@master4755
2 жыл бұрын
Surely the money made before losses is the coupon multiplied by the number of years so 5x5, then plus the nominal value gained at the 5th year (100), meaning the bond has made you £125. Since you bought it at 144, then the percentage difference between these two numbers are the yield?. 125-114/114 x100 = 9.6%
@Riceandgravy
9 жыл бұрын
The A2 macro is good but i don't see how this will come up
@chinarbajaj8499
7 жыл бұрын
@econplusdal sir, the video was very helpful. i just had one question to ask.. government provides compounded interest on the bond or simple interest?
@EconplusDal
7 жыл бұрын
Not compound interest, fixed interest every year
@sephwatson340
7 жыл бұрын
Brilliant thank you. Really useful for my essay on QE.
@mwan6865
3 жыл бұрын
Hello sir, can I have a read of your essay on QE please? 🙏🏻
@ahmedmahay
7 жыл бұрын
Thank you!
@udm001
4 жыл бұрын
Does this National debt include the part of external debt owed by Government to foreigners?
@marcushutchinson3151
8 жыл бұрын
Is this on the Edexcel syllabus? I can't seem to find anything on government bonds in my text book.
@Bieza01
6 жыл бұрын
pretty sure It's not though my teacher seems to love talking about this
@lancsFrogger
7 жыл бұрын
but what about devaluation of the currency???? the Economist Online says the dollar depreciated in value by 33% between 2002 & 2007 (& has probably dropped even more since 2008, what with QE & all) surely this affects the bond yield equation thing?
@agphot1
7 жыл бұрын
Is it true that each Govt Bond is 'underpinned' (given inherent value / strength) by also incorporating a listing of new National Insurance numbers to demonstrate how the economy (Govt) will have the wherewithal (tax revenues) to make the ultimate repayment ?
@raulmaximo5810
4 жыл бұрын
no, that would be unnecesary
@MidhannAhuja
5 жыл бұрын
Oh you god!🙌
@yuxiao123zhu8
9 жыл бұрын
very good vedio i hope u can talk more about the Wage setting,price setting and taylor rule these kind of things tks~
@benjennings748
9 жыл бұрын
In the A2 OCR exam, how would this topic come up?
@NewJayqwe2
9 жыл бұрын
ben jennings Might just apply to Edexcel, he tries to help people of all exam boards
@AlokJadva
2 жыл бұрын
So in this example of 114, you’d be losing money right so it wouldn’t be a very good investment
@AlokJadva
2 жыл бұрын
Sorry there’s the 5 years interest I didn’t take into account
@AlokJadva
2 жыл бұрын
Although I raise a good point because later on in the video you calculate yield to maturity which takes away the capital loss of 14 as above
@MrVijay0305
8 жыл бұрын
wow so the yield can only decrease... for if it increases means our respective govts are doomed to bankrupt... man am I the only one that assumes that money is the greatest con in human history..!!!!
@tarrysmile
6 жыл бұрын
IOU
@Danzii
2 жыл бұрын
I owe you
@Danzii
2 жыл бұрын
smart
@ef7480
3 жыл бұрын
lol 'backed by government' A government that's already £2.5trillion in the hole...
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