Comments by "Magic Beans" (@Magic_beans_) on "Bonds | Using Debt to Invest" video.

  1. Yeah, it just means that when those factors change, they move in opposite directions.
    2
  2. Short answer, yes, the company will pay back the par value (in your example $1,000) at the end of the term, regardless of what you personally paid for it. That 25% return isn't likely though because of competition. If you're offering to buy that bond for $800 so you can get a 25% return, why wouldn't someone else offer $850 and get a 17% return, or $900 and get an 11% return? And it would keep going like that until this bond pays about the same rate as similar bonds.
    2
  3. US Treasury bonds can be bought directly from the Treasury. Otherwise you'll probably need to go through a brokerage. There's usually an area titled "Fixed Income" or something like that where you can buy or sell government bonds, corporate bonds, bank certificates, annuities, or mutual funds that hold any of these things.
    2