Bonds

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  • 1. BondsW H A T A R E … Bonds?
  • 2. Not These Bonds
  • 3. LikeThis Bonds
  • 4. BondsAre loans made by the investor to the issuer; the investor is repaid with interest
  • 5. BondsAre loans made by the investor to the issuer; the investor is repaid with interest These Bonds Not this Bond
  • 6. This MeansYOU loan your money to a company, city, or a government. THEY promise to pay you back in full, with interest.
  • 7. WhyA r e b o n d s i s s u e d ?
  • 8. MONEY B o n d s a r e i s s u e d b e c a u s e Companies and Governments need
  • 9. CompaniesUse bonds to help their business grow
  • 10. GovernmentsUse bonds for things such as infrastructure and social programs
  • 11. Bonds The Types of
  • 12. Corporate BondsBonds issued by companies
  • 13. Municipal BondsBonds issued by states, cities, and local governments
  • 14. Treasury Bonds Bonds issued U.S. Government
  • 15. U.S. Savings BondsBonds issued U.S. Government that earn interest, and after a set time the bond can be cashed in for its original value plus the interest.
  • 16. Bonds How do Work?
  • 17. Issuer The indebted entity (the company/government) is the
  • 18. Face The amount paid (original value) for a bond is called the Value
  • 19. Coupon The interest rate that the bond will be paid is the
  • 20. Maturity The date on which the face value of a bond becomes due and is repaid to the investor and interest payments stop is the Date