03-14-2011 PowerPoints

03-14-2011 PowerPoints - Important Course Activities Final...

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1 Final Draft of Spending Plan March 16, 2011 Important Course Activities Midterm Review: March March 16, 2011 16, 2011 Midterm: March March 21, 2011 21, 2011 Assignment Each team will need to find an article about the bond they chose. Your team will need to share the article with the will need to share the article with the class. Corporate Bonds Issued by corporations A way for companies to raise funds / capital (are there other ways for a company to raise funds?) Maturity: greater than one year (less than one year the term is commercial paper ) Secured or unsecured debt Senior vs. subordinated debt *Interest payments are treated as taxable income* Municipal Bonds Issued by local / state governments Used to fund public projects such as schools, highways, hospitals, public housing, sewer systems Nickname: “munis” *Income is exempt from federal income tax* (may apply to state and local taxes as well) A favorite investment for the rich Why would munis offer a lower interest rate that corporate bonds?
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2 Treasury Bill (U.S. T-bill) Issued by the federal government (US Treasury) A short-term debt obligation (less than one year) Sold at a discount Pays interest only at maturity Face value: minimum $1,000
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This note was uploaded on 04/19/2011 for the course EE 0822 taught by Professor Lengkeek during the Spring '11 term at Temple.

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03-14-2011 PowerPoints - Important Course Activities Final...

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