1. BondsW H A T A R E …
Bonds?

3. Not
These
Bonds

4. LikeThis
Bonds

5. BondsAre loans made by the investor to the
issuer; the investor is repaid with
interest

6. BondsAre loans made by the investor to the
issuer; the investor is repaid with
interest
These Bonds
Not this Bond

7. This MeansYOU loan your money to a company, city, or a government.
THEY promise to pay you back in full, with interest.

8. WhyA r e b o n d s i s s u e d ?

9. MONEY
B o n d s a r e i s s u e d b e c a u s e
Companies and Governments need

10. CompaniesUse bonds to help their business grow

11. GovernmentsUse bonds for things such as infrastructure and
social programs

12. Bonds
The Types of

13. Corporate
BondsBonds issued by companies

14. Municipal
BondsBonds issued by states, cities, and
local governments

15. Treasury
Bonds
Bonds issued U.S. Government

16. U.S. Savings
BondsBonds issued U.S. Government that
earn interest, and after a set time the
bond can be cashed in for its original
value plus the interest.

17. Bonds
How do
Work?

18. Issuer
The indebted entity (the
company/government) is the

19. Face
The amount paid
(original value) for a
bond is called the
Value

20. Coupon
The interest rate that
the bond will be paid
is the

21. Maturity
The date on which the face value of a
bond becomes due and is repaid to the
investor and interest payments stop is the
Date