Purpose of bonds
You should spend between $100,000 and $200,000 on a group of debt investments. From your experience exploring the corporate, federal, and municipal bond markets, select at least:
- One corporate bond purchase. One Treasury bill or bond.
- One municipal bond.
Finally, in a Word document, supplemented with Excel, please submit a recap of your activity if you think appropriate. Be sure to include an analysis of your decisions in your notes explaining your choice of bonds.Checklist:
Explain the nature and purpose of bonds.
Explain call provisions and compute yield to call.
Interpret bond ratings.
Contrast current yield and yield to maturity