Bonds and Real Estate

Written promises to repay a loan with interest on a specific date (the maturity date)

• Bonds

• Real Estate

Land and anything attached to it, such as buildings and natural resources

• Bonds

• Real Estate

Buyer of the bond becomes the creditor or lender to the corporation or government that issued the bond

• True

• False

The rate of interest on a bond

• Coupon Rate

• Bond Discount

The difference between the amount you pay for the bond and its face value

• Coupon Rate

• Bond Discount

Bonds are rated from secure (highest rating) to speculative (lowest rating). Bonds with more risk carry a higher interest rate.

• True

• False

Bonds are not considered a safe place to invest money

• True

• False

Bonds sold by the federal government

• Savings Bonds

• Municipal Bonds

• Corporate Bonds

• Junk Bonds

Bonds issued by local and state governments

• Savings Bonds

• Municipal Bonds

• Corporate Bonds

• Junk Bonds

Bonds issued by corporations

• Savings Bonds

• Municipal Bonds

• Corporate Bonds

• Junk Bonds