Bonds For Beginner Investors
Description
Since bonds play a key role in the business decisions of most investors, it is important to understand those risks associated with bond investments.
You have been asked to speak to an introductory financial investment class at a local community college. Bond investment is this week's topic. Prepare a PowerPoint presentation which includes the following:
1. Discuss the concepts related to the present and future value of money. Provide examples of each.
2. Describe the major sources of extemal long-term debt financing for corporations.
3. Describe the key characteristics of corporate bonds. Include in your response what is meant by bond covenants and bond ratings. Provide examples of the different types of covenants and explain why they exist. Discuss the various types of bond ratings and provide examples