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Summary of Proofs Bond and Compensation Form

Summary of Proofs Bond and Compensation Form

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What makes the summary of proofs bond and compensation form legally binding?

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foreign Karen King here today we're going to be looking at the relationship between bond price and bond yields and in particular why when the price of a bond goes up its yield goes down and vice versa so firstly a little bit of revision for you what is a bond a bond is essentially an IOU document between a lender and a borrower so an organization a company or a government will go out to investors and say right we want to raise some money for new projects they will then issue bonds to those investors in exchange for their cash so for example let's say you as an investor buy a Government Bond of one thousand pounds for one thousand pounds meaning that you have loaned the government 1 000 pounds and in return have received this Bond now of course money isn't free so your 1000 Bond let's say has an interest rate of five percent with immaturity of 10 years so this means that every year for 10 years you'll be you will receive five percent interest on the money you put down which is essential

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