- Tax Planning
- Investments 1: Before you Invest
- Investments 2: Your Investment Plan
- Investments 3: Securities Market Basics
- Investments 4: Bond Basics
- Investments 5: Stock Basics
- Investments 6: Mutual Fund Basics
- Investments 7: Building Your Portfolio
- Investments 8: Picking Financial Assets
- Investments 9: Portfolio Rebalancing and Reporting
- Retirement 1: Basics
- Retirement 2: Social Security
- Retirement 3: Employer Qualified Plans
- Retirement 4: Individual and Small Business Plans
- Estate Planning Basics
Case Study #4
Data:
Hassan recently purchased a bond with a ten-year maturity for $1,000 which pays annual interest of $100.
Calculations:
What interest rate is Hassan receiving?
If interest rates for ten-year bonds today are 5 percent, how much can Hassan sell his bond for today?
How much could he sell the bond for tomorrow if interest rates move up to 12 percent?
Applications:
Based on your calculations, what is the relationship between interest rates and the value between bonds?
