 Explain why a company might issue bonds instead of stock  Describe corporate bonds and what they represent  Identify the principal ways to issue bonds

 Bond  Callable  Compound Interest  Coupon Bonds  Coupon Rate  Current Yield  Dealer Market  Debenture bonds  Discount  Dividend  Face Value  Fixed income security  Inverse relationship  Junk bonds  Market price  Maturity Date  Mortgage bonds  Note (Bank)  Par Value

 Premium  Present Value  Private placement  Public offering  Senior securities  Stated Yield  Yield  Yield to Maturity  Zero-coupon Bonds

 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 long- term 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: /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. /cs/warrenbuffett/a/aawarrenquo tes.htm

 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 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. malink/meta-dc-567:1