Bonds
A bond that sells for more than its face value
Premium Bond
issued by corporations to raise money
Corporate Bond
Issued by states, counties, cities, and towns
Municipal Bonds
What happens when you buy a savings bond from the government?
You are lending money to the U.S. goverment
A bond that sells for less than its face value
Discount Bond
Coupon Rate
Minimum investment for a municipal bond
$5,000
Help pay for the U.S. government's borrowing needs
Savings Bonds
a loan that a buyer makes to a bond issuer
Bond
A bond with a clause that allows the issuer to repay the bond before the maturity date
Callable Bond
Why is a municipal bond sometimes a better deal than a corporate bond that pays higher interest?
Tax Advantage
Why are savings bonds considered one of he safest investments?
Backed by full faith and credit of the U.S. government
The amount the bondholder will be repaid
Face Value
A bond that can be exchanged for shares of common stock at the option of the bondholder
Convertible Bond
What can municipal bonds be used to pay for?
What two forms are savings bond available in?
Series EE and Series I
A safe investment because they have a fixed interest rate
Bond
A type of corporate bond that is sold at a deep discount, does not provide interest payments, and is redeemable for its face value at maturity
Zero-Coupon Bond
What is exempt from federal taxes and often state and local taxes?
Interest
Which form of savings bonds earn a fixed rate of interest?
Series EE