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Lecture 18 Investing in Bonds
Bonds - To buy or not to buy  ,[object Object],[object Object],15-2
WHY BONDS ,[object Object],[object Object],[object Object],[object Object],15-2
Characteristics of  Bonds ,[object Object],[object Object],[object Object],[object Object],[object Object],15-2
Why Corporations Sell  Bonds ,[object Object],[object Object],[object Object],[object Object],[object Object],15-3
Four Types of Corporate Bonds ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],15-4
Types of Corporate Bonds ,[object Object],[object Object],[object Object],[object Object],(continued) 15-5
Call Feature of Corporate Bonds ,[object Object],[object Object],[object Object],[object Object],15-6
Provisions For  Repayment of Bonds ,[object Object],[object Object],[object Object],[object Object],15-7
Why Investors Buy Corporate Bonds ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],15-8
Bond Registration ,[object Object],[object Object],15-9
Other Bond Information ,[object Object],[object Object],[object Object],15-10
Government Bonds  and Debt Securities ,[object Object],[object Object],[object Object],[object Object],[object Object],15-11
Government  Treasury Bills and Notes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],15-12
Why Do Investors  Buy Government Bonds? ,[object Object],[object Object],15-13
State and Local Government Securities ,[object Object],[object Object],[object Object],[object Object],[object Object],15-15
Why do People Buy  Municipal Bonds? ,[object Object],[object Object],[object Object],[object Object],15-16
Taxable Equivalent Yield ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],15-17
Making the Decision to  Buy or Sell a Bond ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],15-18
Making the Decision to  Buy or Sell a Bond ,[object Object],[object Object],[object Object],[object Object],[object Object],15-19 (continued)
Current Yield of a Bond (%) 15-20 Example: Current yield =  75   800   =  0.094 = 9.4% The Investment’s Current Market value Rupee Amount of Income Generated Yearly
Yield to Maturity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],15-21
Market value of bond ,[object Object],[object Object],[object Object],[object Object],[object Object],15-21

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Investing in bonds

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  • 21. Current Yield of a Bond (%) 15-20 Example: Current yield = 75 800 = 0.094 = 9.4% The Investment’s Current Market value Rupee Amount of Income Generated Yearly
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