The yield on the bond is 6 .

System Profiler and Benchmark

The Spanish Victory Bond.

This guy, he does have interest.

So when most people talk about the yield curve, they're talking about the treasury yield curve.

Is that the original Victory Bond?

So the next question is, well, what determines this yield curve?

This is better than buying treasuries.

So when most people talk about the yield curve, they're talking about the risk free yield curve.

Remember, this is the annual interest rate but this is an overnight loan.

Interest expense.

Periods per year

Periods

So the current yield curve looks something like this.

All we did was, we paid the interest on the debt in this example.

Comparing with a superstar is the wrong benchmark.

And so this is our yield.

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

The debt servicing cost on bonds will take up major portion of the budget.

Minus 1.075 that was the max that I could borrow

So you saw where I got my data.

Lets say it looked like this where this over here is 5 .

And we'll do a more advanced presentation later as to why you might get lower yields for longer duration investments.

But this I just want to show you some data here.

And so is the almost 80 billion we will pay in interest this year on the national debt.

I had 100 of cash, no accounts receiveables,

My assets are 250,000.

You could assume that every possible input array is equally unlikely, and then analyze the average running time of an algorithm.

So in general, you expect less interest when you loan money for a shorter period time than a longer period of time.

It says, you know, social impact over here is spectacular, five stars.

So I actually went to the treasury website, so that's treas.gov.

And I always start to jumble things when I run out of time.

Number of payments per year

So a security in the equity world is a stock.

So first, a little bit of definitions.

So these treasury securities, whether they're T Bills, treasury bills, treasury notes, or treasury bonds.

So this is what people are talking about when they say treasury prices go up, if treasury prices go up then the yields go down

I don't want to think about, are they good at getting low interest?

So liabilities. Liabilities.

Let's say assets and I'll talk about margin requirements

And then for 30 years, I get 4.35 .

A 6 yield is guaranteed on the investment.

These are just definitional things to worry about.

And this is an annual income statement.

Well, nothing.