LESSON 7.4 & 7.5 OBJECTIVES

BONDS

AFTER STUDYING THIS LESSON YOU WILL BE ABLE TO DO THE FOLLOWING:

• CALCULATE MARKET PRICE OF BONDS

• CALCULATE THE TOTAL INVESTMENT IN A BOND PURCHASE

• CALCULATE BOND INCOME

AFTER STUDYING THIS LESSON YOU WILL BE ABLE TO DO THE FOLLOWING:

• CALCULATE BOND YIELD

• CALCULATE THE TOTAL COST OF A BOND PURCHASE

• EXPLAIN THE DIFFERENCE BETWEEN SAVINGS BONDS AND CORPORATE BONDS