SAVING AND INVESTMENT CHOICES  Savings plans  Savings account  Certificate of deposit  Money market account  Securities  Stock investments  Bond investments  Mutual funds  Alternative investments  Real estate  Commodities  Collectibles SLID E 1

EVALUATING SAVINGS AND INVESTMENTS  Safety and risk  Potential return  Liquidity  Taxes SLID E 2

INVESTMENT PYRAMID SLID E 3

 SLIDE Bonds and Mutual Funds Goal 1 List types of government bonds. Goal 2 Describe features of corporate bonds. Goal 3 Describe various types of mutual funds.

Bonds……???

Bonds????

SLIDE 7 KEY TERMS  municipal bond  corporate bond  mutual fund

SLIDE 8 GOVERNMENT BONDS  Municipal bonds  U.S. savings bonds  Other federal securities  Federal notes (T-notes)  Treasury bills (T-bills)  Treasury bonds (T-bonds)

SLIDE 9 Checkpoint  List the types of bonds issued by the federal government of the United States.  The types of U.S. savings bonds issued by the federal government are Series EE bonds, Series HH bonds, and I bonds.  The federal government also issues Treasury bills and Treasury notes.

SLIDE 10 CORPORATE BONDS  Bond components  Bond values

SLIDE 11 Checkpoint  What affects the value of a bond?  The value of a bond is affected by changing interest rates.  If the bond ’ s stated rate is lower than interest rates on similar bonds, investors will want to buy the bond for less than its face value.  If the bond ’ s stated interest rate is higher than interest rates on similar bonds, the seller of the bond will want to receive more than its face value.

SLIDE 12 MUTUAL FUNDS  A mutual fund is an investment fund set up and managed by companies that receive money from many investors.

SLIDE 13 COMMON TYPES OF MUTUAL FUNDS  Aggressive-growth stock funds  Income funds  International funds  Sector funds  Bond funds  Balanced funds

SLIDE 14 MUTUAL FUND VALUES  Shares of the mutual fund  Value of each share  Net asset value (NAV)  Operating expenses  Earnings

SLIDE 15 Checkpoint  What are the main types of mutual funds?  The main types of mutual funds are aggressive-growth stock funds, income funds, international funds, sector funds, bond funds, and balanced funds.