I am currently learning about quantitative easing, and I am having trouble understanding yield rates and how that influences the "cost of borrowing".
This is the resource I am using.
The lecturer says something along the lines of "the yield of bonds reflects the cost of borrowing for the issuer. If the yield for these bonds reduces it means accessing finance is cheaper. They can raise finance but now at a lower cost to them" (he is referring to both government and corporate bonds).
I am a bit confused about some things here. When he says that "the yield of [corporate] bonds reflects the cost of borrowing for the issuer, so for banks who issue corporate bonds, if the yield on the bonds decreases it is cheaper to access finance", is this simply referring to how much the company has to pay back for the bond or is it referring to how much it costs banks to borrow from the central bank - and are corporate bonds only referring to banks or are they referring to all corporations? And when they say "the yield of these bonds reduces ... they can raise finance at a lower cost to them", is that referring banks borrowing from other banks or something?
Sorry if this is confusing I'm just having trouble piecing this together.