Business and Personal Finance © 2007Chapter 10:
Bonds and Mutual FundsChapter Summaries- Corporate bonds have the following characteristics: interest rates, maturity dates, and face values.
- Corporations sell bonds to raise funds for operations, expansions, or purchases.
- Investors buy bonds because they provide regular income, plus the principal must be repaid by maturity.
- Governments sell bonds for reasons similar to corporations: to fund regular activities and finance the national debt.
- Government bonds include Treasury bills, Treasury notes, and U.S. savings bonds (Series EE).
- Information on bonds is available in the financial press, corporate annual reports, bond rating reports, and online.
- Types of mutual funds include closed-end mutual funds, open-end mutual funds, load funds, and no-load funds.
- Mutual fund information is found in newspapers, annual reports, and financial publications, and through Web sites and advisors.
- Methods of buying and selling include regular account transactions, voluntary savings plans, payroll deduction plans, contractual savings plans, reinvestment plans, and withdrawal options.
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