Name__________________ Date due__________date turned in___________
Posted on internet Monday 04_23/ Due Wednesday 04_25
Chapter 11: Section 2: Bonds and Other Financial Assets
Date Due: 12_27 Pgs. 277 to 284
Thru 293 Graphs Fig.11.1;11.2;11.3;11.4;11.5;11.6.; 11.7 11.8. Global
Connection: pg.282 Skills for Life:page:284 Fast Fact pg.291 Economic
profile Warren Buffett pg.276; Case study: The Fate of Dot Coms pg.293:
Objectives: After studying this section you will be able to:
A. Describe the characteristics of bonds as financial assets.
B. Identify different types of bonds.
C. Describe the characteristics of other types of financial assets.
D. Explained four different types of financial asset markets
Main Idea: Corporations and governments borrow money by selling bonds and
other financial assets. The Corporation or government pays the purchaser
interest on the bonds and replays the principal, or money borrowed, at a
specified time.
1. Certificates sold by a company or government to finance projects or
expansions are called____________
2. Government savings bonds that helped finance World War II were
called_____ _______
Bonds as Financial Assets
3. Bonds are basically____ __ __s. Bonds have three basic components;
a)_______
_______ is the interest rate that the bond issuer will pay to
the bondholder. b)_____ is the time at which payment to the bondholder is
due c) the amount that an investor pays to purchase the bond and that will
be repaid to the investor and maturity is called____ value. Par value is
also called face value or principal.
4. The investor who buys the bond is called_____the seller of the bond is
called______. If you buy $1000 bond that promises to pay you 5% annually
this 5% is called the______ rate, the $1000 is called par_______ and you
and issuer agree that the bond will_______ in 10 years. How much money
will you receive every year for 10 years?_________ the annual rate of
return on the bond if the bond were held to maturity is called________.
5. If the national interest rate would go up to 7% and your holding a bond
was yield is 5% what can you do to sell the bond since your money could
earn 7% instead of 5%._________
6. Standard and Poor's and Moody’s ratings are based on a) the issuer's
ability to make future interest payments and to be able to repay
the__________ when the bond matures. A bond rating of D means that the
bond is in danger of________.
7. A AAA rating will pay a lower interest rate, because of its low risk
and a triple B bond which may have to pay a__________ interest-rate
because of its higher__________. The bond with a high rating faces the
risk of losing par value. T F
8. For the issuer bonds are good because the__________ rate is fixed. Also
bondholders do not own part of the company. T F disadvantages are that
even if the company has bad years they still have to make interest
payments at a set rate even if interest rates have gone down.T F. If the
financial health of the company goes down bonds could be harder to sell.
T F
Types of Bonds
9. Bonds issued by the United States government are called________ bonds. These
are considered high-risk bonds T F. United States savings bonds are usually sold
at less than par value. T F
10. Treasury bonds known as T-bills and T-notes are extremely safe investments. T
F. “Munis” is short for_______ bonds. They are usually issued by cities like
Strongsville. T F. One does not have to pay income taxes to the IRS on the income
earned from “munis”. T F
11. The interest earned on corporate bonds are not taxable. T F what government
agency carefully watches the sale of corporate bonds__________
12. A lower rated potentially higher-paying bond is called a____bond very popular
in the 80s and 90s. Junk bonds are highly speculative and there is a strong
possibility the issuer may default. T F
Markets
13. Markets in which money is lent for periods longer than a year are
called________ markets. A long-term CD is a financial asset that is traded in
capital markets.
14. Markets in which money is lent for periods of less than a year are
called__________ markets, such as short-term CDs, treasury bills, money market
mutual funds.
15. Financial assets that can be only redeemed by the original holder are sold
on________ markets, such as savings bonds which cannot be sold to someone else.
Lamberty
For week of: 01_30_12
OGT: Economics:Content Standard 1 and and 3 2 compare and contrast different methods of resource
allocation. Limited resources unlimited wants, comparing alternatives
Course:
Economics
Monday30
Chapter 2 section1
Lesson Objectives/Activities:
Answering the 3 economic questions
homework
Chapter 2 section2 the free market
In class
Chapter 2 section1 Answering the 3 economic questions
Tuesday31
Chapter 2 Economic Systems
Lesson Objectives/Activities:
Chapter 2 the free market
Homework:
Chapter 2 section 3 centrally planned economies
In class
Chapter 2 section2 the free maket
wednesday 01
Chapter 2 centrally planned economies
Lesson Objectives/Activities:
Students will complete recall what countries ? centrally planned economies
(homework)
Students will do section 4 chapter 2 modern economies
In class
Section n3 chapter 2
Thursday02
Chapter 3American free enterprise systems
Lesson Objectives/Activities:
Chapter 3 section1 benefits of free enterprise
Homework
Chapter 3 section 1 benefits of free enterprise
In class
Chapter 2 section 4 modern economies
friday 03
Chapter 3 american free enterprise
Lesson Objectives/Activities:
Students will receive feedback on their understanding of chapter 1
homework
Chapter 3 section 2 and 3 promoting growth and stability
In class
Course:
Course:
Course:
Course:
Course:
Chapter 3 section 1 benefits of free enterprise
Social Studies Standards
1.
2.
3.
4.
5.
6.
7.
History- Students use materials drawn from the diversity of human experience to analyze and interpret
significant events, patterns, and themes in the history of Ohio, The United States and the World.
People in Societies- Students use the knowledge of perspectives, practices, and products of cultural,
ethnic, and social groups to analyze the impact of their commonality and diversity within local,
national, regional, and global settings
Geography- Students use the knowledge of geographic locations, patterns, and processes to show the
interrelationship between the physical environment and human activity, and to explain the interactions
that occur in an increasingly interdependent world.
Economics- Students use economic reasoning skills and knowledge of major economic concepts,
issues, and systems in order to make informed choices as producers, consumers, savers, investors,
workers, and citizens in an interdependent world.
Government- Students use the knowledge of the purpose, structures, and processes of political
systems at the local, state, national, and international levels to understand that people create systems of
government as structures of power and authority to provide order, maintain stability, and promote the
general welfare.
Citizen rights and Responsibilities- Students use knowledge of the rights and responsibilities of
citizenship in order to examine and evaluate civic ideas and to participate in community life and the
American democratic system.
Social Studies Skills and Methods- Students collect, organize, evaluate, and synthesize information
from multiple sources to draw logical conclusions. Students communicate this information using
appropriate social studies terminology in oral, written, or multi-media form and apply what they have
learned to societal issues in simulated or real world settings.
nancial assets that can be resold are sold on________- markets.
Fi