1. © South-Western Educational Publishing Chapter 13 Investing in Bonds  Characteristics of Bonds  Buying and Selling Bonds

2. GOALS © South-Western Educational Publishing Lesson 13.1 Characteristics of Bonds  Discuss the features and types of corporate bonds  Calculate earnings on a corporate bond  Describe federal and municipal gov’t securities bonds

3. Difference between Stocks and Bonds   

4. © South-Western Educational Publishing Corporate Bonds   

5. © South-Western Educational Publishing Features of Corporate Bonds    

6. © South-Western Educational Publishing Types of Corporate Bonds    

7. © South-Western Educational Publishing Interest Payments on a Ten-Year 6% Corporate Bond June 30December 31 YearInterestInterest 1$300.00$300.00 2$300.00$300.00 3$300.00$300.00 4$300.00$300.00 5$300.00$300.00 6$300.00$300.00 7$300.00$300.00 8$300.00$300.00 9$300.00$300.00 10$300.00$300.00 January 1, 2010: $10,000 principal is repaid

8. © South-Western Educational Publishing Government Bonds    

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10. © South-Western Educational Publishing Zero-Coupon Bonds   

11. © South-Western Educational Publishing Comparing Taxable and Tax-Exempt Bonds Corporate MunicipalBond Face Value (Principal)$10,000$10,000 Rate of Interest6%5% Amount of Annual Interest$ 600$ 500 Tax on Interest Earned (28%)1680 Net Interest$ 432$ 500

12. GOALS © South-Western Educational Publishing Lesson 13.2 Buying and Selling Bonds  Explain how to buy and sell bonds  Describe how to evaluate different grades of bonds  Explain how to read bond listings in financial publications

13. © South-Western Educational Publishing How to Buy and Sell Bonds   

14. © South-Western Educational Publishing Evaluating Bonds      

15. © South-Western Educational Publishing Type/Coupon3 p.m.Net NameRatingRateMaturityBidChangeYield 12345671234567 Reading Corporate Bond Listings AK Steela/BB9.12512/0698½unch9.46 Allied Wasteb/B+10.0008/09102½unch9.57 Am Stda/BB+7.3752/0898½-1¼7.56 Chanclrb/BB+8.12512/07103½unch7.36 Echostara/B9.3752/09101¼unch9.52