Download Bonds

Explain why a
company might issue
bonds instead of stock
Describe corporate
bonds and what they
represent
Identify the principal
ways to issue bonds
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Dividend
Face Value
Fixed income security
Inverse relationship
Junk bonds
Market price
Maturity Date
Mortgage bonds
Note (Bank)
Par Value
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Bond
Callable
Compound Interest
Coupon Bonds
Coupon Rate
Current Yield
Dealer Market
Debenture bonds
Discount
 Zero-coupon Bonds
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Premium
Present Value
Private placement
Public offering
Senior securities
Stated Yield
Yield
Yield to Maturity
 Imagine you are small business
owners interested in raising capital
to support the growth of their
company
 In addition to the stocks, there exists
another type of security that companies
use to finance their operations: corporate
bonds
 Download- Frayer Organizational
Model: Bonds
 Use this to organize your information
 Download- Reading: An
Introduction to Bonds
 As you read jot down words and phrases
that fit into the Frayer Model
 Essential characteristics
 Nonessential characteristics
 Examples
 Non-examples
 Essential characteristics are traits
that bonds would always have
 Nonessential characteristics are
those traits that bonds might
sometimes have
 Download- Worksheet: Corporate
Bonds
 Complete and submit to the website
 The most important thing that I
learned about bonds was…
 One of the main benefits of
financing a company through
bonds is…
 What do you think determines a
bond’s value?
 Many companies use debt to finance their
businesses
 A bond is one form of a company’s longterm debt
 Download- Reading: Determining
the Price of a Bond
 After each section write down the key
points
 Complete the two questions at the end of
the Present Value section before moving
on
 Download- Assignment: Stocks and
Bonds Recommendations
 You will be making recommendations to
two friends—one who is trying to help her
parents save for retirement and another
who is interested in launching his own
business
 Download- Reading: Comparing Stocks
and Bonds
 Understanding the differences
between stocks and bonds and
being aware of how and why they
are issued is an important financial
concept to grasp.
 Not only is this knowledge
important on a personal level, as it
can affect the investment choices
that you make for your future, but
it also provides individuals with an
understanding of the critical role
that stocks and bonds play in the
health and strength of the
economy in general
 Have students refer to the
following website:
http://beginnersinvest.about.com
/cs/warrenbuffett/a/aawarrenquo
tes.htm and choose one of the
quotes to analyze. Have students
decide if they agree or disagree
with the statement with an
explanation of their reasoning.
 Social Studies: Explain to the class
that US Savings Bonds are the
single most widely held security in
the world and that over 55 million
Americans own them. Over the last
60 years, posters have helped to
promote the sale of savings bonds.
Instruct students to refer to the
website
http://digital.library.unt.edu/per
malink/meta-dc-567:1, and
examine the poster on the site.
Have students make a list of
various elements that they notice.
For example, how would they
describe the family? What can they
say about the slogan? Next, have
students create their own US
Savings Bonds poster that includes
a slogan and a picture that
accurately depicts today’s culture.