EPISODE · Jun 7, 2026 · 10 MIN
Why Government Bonds Trade Below Face Value
from Government Spending with Fexingo: Budget, Deficits, and Public Finance Explained · host Fexingo
Episode 36 of Government Spending with Fexingo: Budget, Deficits, and Public Finance Explained. Lucas and Luna dig into the mechanics of discount bonds—why a $1,000 government bond can trade for $950. Using Australia's 2033 bond as a real-world example, they explain the math behind coupon rates, prevailing yields, and present value. They also cover why bond prices fall when interest rates rise, the difference between trading at a discount versus a premium, and how this affects government borrowing costs. No prior finance knowledge needed—just curiosity about how public finance actually works. #DiscountBonds #GovernmentBonds #BondPricing #CouponRate #YieldToMaturity #InterestRates #PresentValue #AustraliaBonds #FixedIncome #GovernmentDebt #BondMarket #Treasury #PublicFinance #Economics #FexingoBusiness #BusinessPodcast #FinanceEducation #BondBasics Keep every episode free: buymeacoffee.com/fexingo
What this episode covers
Episode 36 of Government Spending with Fexingo: Budget, Deficits, and Public Finance Explained. Lucas and Luna dig into the mechanics of discount bonds—why a $1,000 government bond can trade for $950. Using Australia's 2033 bond as a real-world example, they explain the math behind coupon rates, prevailing yields, and present value. They also cover why bond prices fall when interest rates rise, the difference between trading at a discount versus a premium, and how this affects government borrowing costs. No prior finance knowledge needed—just curiosity about how public finance actually works. #DiscountBonds #GovernmentBonds #BondPricing #CouponRate #YieldToMaturity #InterestRates #PresentValue #AustraliaBonds #FixedIncome #GovernmentDebt #BondMarket #Treasury #PublicFinance #Economics #FexingoBusiness #BusinessPodcast #FinanceEducation #BondBasics Keep every episode free: buymeacoffee.com/fexingo
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Why Government Bonds Trade Below Face Value
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