By Aspen Greaves Bonds. What are Bonds? According to the Wall Street Journal, bonds are IOU’s. ...
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Transcript of By Aspen Greaves Bonds. What are Bonds? According to the Wall Street Journal, bonds are IOU’s. ...
By Aspen Greaves
Bonds
What are Bonds? According to the Wall Street Journal, bonds are IOU’s.
They are considered the safer option.
15% of retirement fund
Not entirely risk free
How to Buy Bonds Investopedia suggests a brokerage.
Broker requires a 5,000 minimum deposit on average.
Mutual or Bond funds
Government Accounts
Treasury- http://www.treasurydirect.gov
Benefits of Bonds Bonds are usually a safer option.
They are known as risk free
Never lose your principle
Risks/Cons of Bonds You just don’t make money
Junk Bonds
Types of Bonds Government Bonds
Treasury Bonds
Junk Bonds
Municipal Bonds
Corporate Bonds
Returns/Return Potential Typically lower than stocks.
Lower risk, lower return
Costs Brokers- $5,000
Quiz .
Question 1 .
What does the Wall Street Journal classify bonds as?
a) IOU’s
b) Debts
c) Promises
d) Returns
Question 2 .
What government department allows you to buy stocks directly from them?
a) Department of Agriculture
b) Supreme Court
c) Treasury
d) Department of Education
Question 3 .
True or False: Bonds are riskier than stocks?
a) True
b) False
Question 4 .
What organization can charge a minimum fee of $5000?
a) Mutual Funds
b) Brokers
c) Treasury
d) Brokerage
Question 5 .
What bonds generally have the best return potential?
a) Government Bonds
b) Corporate Bonds
c) Municipal Bonds
d) Junk Bonds
The End .