Treasury Bond Prices and Yields: CNBC Explains
When you buy a U.S. Treasury Security, you’re essentially giving a loan to the government. When these bonds are transacted, they have varying yields based upon how much a buyer is willing to pay. Salman Khan of the Khan Academy demonstrates how price and yield of treasury securities works.
From this video, you’ll understand:
- How prices of treasuries and yields interact
- How to calculate the yield of a bond