The Basics of

Bonds

Current Annual Percentage Rate Returns on Savings

Savings Account

1 Year Cd

2.5 Year CD

Money Market Mutual Fund* H Bond

EE Savings Bond I Bond

.75% 1.69% 2.8% 1.98% 1.5% 2.66% 4.66%

Types of Bonds

Government Municipality Corporation Mortgage Backed Securities Specialty Bonds

U.S. Government Bonds

Series EE Series I Series HH

Who are these people…

And what denomination I Bond do they appear on???

U. S. Treasury Securities

Treasury Notes Treasury Bills

Municipal Bonds

General Obligation Revenue Bonds

Yield of Taxable and Tax-Exempt Investments

Sample Federal Tax Bracket 15% 28% 33%

Taxable Investment Yield

4% 4.7% 5.6% 6.0%5% 5.8% 6.9% 7.5% 6% 7.0% 8.3% 9.0% 7% 8.2% 9.2% 10.4%

Corporate Bonds

Risk/Reward Convertible Bonds Zero Coupon Bonds

Other Types of Bonds

Bond Mutual Funds Mortgage Backed Securities Collateralized Mortgage Obligations Unit Investment Trusts Annuities

Learning the Lingo Interest Rate Maturity Redemption Features Call Provisions Puts Average Life Principal Payments Credit Quality Credit Rating Bond Insurance

Price Yield Market Fluctuations Tax Status Diversification Inflation Risk Laddering Volatility Bearer Bond Par

Are Bonds for YOU?

Your Goals Your Timeline Your Risk Tolerance

The first rule of becoming wealthy is not to lose money.The second rule is not to forget the first rule. Warren Buffet