Understanding Treasury Bonds

I would like to learn some basic information about treasury bonds. The following questions are of interest to me: How the coupon rate is determined? How the yield is determined? What’s the relationship between yield and price? The relationship between yield and interest rate? From a macroeconomic perspective, what’s the status of the treasury bond market of USA, China, and Japan? We refer to these lectures. Treasury Bonds are debt securities issued by the government to finance its operations. They are known for their stability and are key instruments in the financial markets. Below is a structured explanation of the key concepts related to Treasury Bonds. ...

January 20, 2025

Understanding Income Statements and Cash Flow Statements

I’m trying to learn financial investment, so I will first attempt to read financial reports to understand the business activities happening in the world. Here are some fundamentals to get know about a company: Income Statement (Profit & Loss): Shows the company’s revenues, expenses, and profits over a specific period. Key metrics to focus on: revenue, gross profit, operating profit, net income. It’s kind of a video shows the activity of the company in a past period. Balance Sheet: Provides a snapshot of the company’s assets, liabilities, and equity at a specific point in time. It gives insight into the company’s financial health and how it’s funded. It’s like a snapshot. Cash Flow Statement: Highlights the company’s cash inflows and outflows over a period. It focuses on operating, investing, and financing activities. A key metric here is free cash flow, which indicates the amount of cash a company has left after capital expenditures. Statement of Shareholders’ Equity: Explains changes in equity from the previous period. Difference of Income Statement and Cash Flow Statement 1. Income Statement (Profit & Loss Statement) What it focuses on: The Income Statement shows a company’s revenues and expenses over a specific period (e.g., a quarter or a year), and ultimately calculates the net income (profit or loss). It focuses on accrual accounting, which means it records revenues when earned and expenses when incurred, regardless of when the actual cash is received or paid. ...

December 24, 2024