Bonds
A bond is a financial instrument that contains a fixed obligation to pay periodical interest payments. Watch this video to find out more.
Watch the video and then summarise what you have learned.
A bond is a financial instrument that contains a fixed obligation to pay periodical interest payments, as well as the final payment of the principal to the investors, being the purchasers of the bond.
02:15 Bond pricing formula
Bond Price = (frac{C}{(1 + i)}) + (frac{C}{(1 + i)^2}) + … + (frac{C}{(1 + i)^n}) + (frac{M}{(1 + i)^n})
