Current Event Article

Seach a current event or article that exemplifies and/or applies the chapters concept(s)

Click here for Learning Outcomes "Corporate Bonds vs. Government Bonds

• • One- Identify the different features of corporate and government bonds.
  • Two- Discuss how bond prices are determined in the market, what the relationship is betweeninterest rates and bond prices, and how a bond's price changes over time as it approachesmaturity.
  • Three- Calculate a bond's yield to maturity and yield to call if it is callable, and determine the"true" yield.
  • Four- Explain the different types of risk that bond investors and issuers face, and discuss how abond's terms and collateral can be changed to affect its interest rate.
  • Five- Discuss the difference between diversifiable risk and market risk, and explain how eachtype of risk affects well-diversified investors.
  • Six- Discuss how changes in the general stock and bond markets could lead to changes in therequired rate of return on a firm's stock.
  • Seven- Discuss how changes in a firm's operations might lead to changes in the required rate ofreturn on the firm's stock.