Real change happens so quickly that we often don’t notice when it occurs. The changing of seasons is a good example. Clearly, winter and spring are very different. It’s hot during the day and cold at night, but when we see spring flowers blooming along the roadside, we realize spring has arrived. We tend to think that big changes will feel different, but sometimes small signs reveal the change. For instance, when our foreheads sweat even with little movement, we recognize that the temperature is getting warmer. What changes might you not notice or recognize? Perhaps your weight? - Joseph’s “just my thoughts”
Many people in our society invest in bonds . Perhaps you, reading this article, have invested in bonds at least once and are still investing now. Bank deposits are a form of bonds, just not labeled as ‘bonds.’ When you deposit your money in a bank, the money isn’t considered bank money. Interest is paid because the money isn’t withdrawn immediately. When you withdraw your deposited money, the bank must return the principal plus interest. This is essentially a bond. However, the only reason this differs from bonds as an investment asset is that these bank deposits are not traded on the market. If bank deposits were traded publicly, the interest rate would be evaluated in comparison with other deposits, even if the principal remains unchanged. Valuation reflects opportunity cost . This is the transaction value of bonds . When goods or assets are traded in the market, their value is re-evaluated. The core of value is comparison, and the tool for valuation is opportunity cost. That’s why C...