The USA had was called a bond auction.

A bond auction is when you can,

as an American citizen you can bid on bonds. Sovereign binds, which is going to be in a form of T-notes with maturity dates

of one to ten years. T-bills, which got maturity's between 1 to 10 years.

What this bond auction does is so $42 billion worth

the two-year notes for auction dogs.

What this does is this tells us the credibility

or the credit worthiness of a country.

Right, so that's talking about how bonds are used for a second.

Let's say I had, I wanted to build my studio.

I needed

a hundred thousand dollars.

I needed a hundred thousand dollars so I gave away I had up for auction 10 $10,000 bonds right you're with me on that bond.

Right? Y'all with me on that?

Each bond gave you a yield

of 10%

which means you bought the bind for 10,000.

If I had a 3 year maturity on it,

that means the first year I would give you $1,000 back because 10% of 10,000 is what?

1,000.

So the first year I would give you $ 1,000. So the first year, I would give you 1,000 back.

The second year, I would give you 1,000 back.

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