Download Preston’s 1 page checklist for finding great stock picks:

Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location:

In this lesson, students learned how to apply the bond calculator. We learned that as interest rates increase, the value of a bond decreases. Similarly, when interest rates decrease, the value of a bond decreases.

When using the bond calculator, it becomes evident that the term of the security changes as it approaches the maturity. Since a premium or discount paid for a bond cannot be recuperated through coupon payments, short term bonds are less affected by changes in interest rates compared to long term bonds. This idea of changing interest rates can be taken advantage of by intelligent investors if they purchase high yielding long term bonds. In order to find a high yielding, long term bond, an investor can implement the ideas learned in lesson 3 of this unit.

Articles You May Like

Hidden Penny Gems: 7 Stocks With Triple-Digit Growth Prospects
Blue-Chip Backbone: 3 Stocks for Unwavering Market Strength
Top Wall Street analysts recommend these 3 stocks for the long term
Get Ready for OpenAI Sora! 3 AI Stocks to Play the Rise of Text-to-Video
3 Disruptive Technologies That’ll Change the World. Here’s How to Play Them