Bonds

Paper Summary:

This paper looks at bonds, a splitting of a very large loan into many easily transferable notes or units. It discusses how each bond is a long-term investment, which also bears an interest and how, after being issued, the bond is sold to the investing public with the result that there are multiple bondholders participating in one loan. Through an analysis of the different types of bonds available, it attempts to advise on the right bond for the right situation.

Outline
Abstract
Introduction
What are Bonds?
Issuance of Bonds
Liquidity of Bonds
U.S. Government Bonds
Municipal Bonds
Corporate Bonds
Zero-Coupon Bonds
Conclusion

From the Paper:

"Bonds have never been as attractive to investor as stocks, and in recent years bonds look plain and confusing. Who needs them? And while stocks have averaged 11% annual returns over time, bonds have dropped down to less than 6%. The happened in 1998, when bonds posted an 8.6% total return and stocks took 26.7%. It was the fourth straight year of 20%-plus gains for the S&P 500 index (Morgan Stanley). Well, don't be fooled. Stocks won't always give you such great returns. And it's often the case that when stocks go down, bonds go up, making them an excellent source for diversifying your portfolio. In the third quarter of 1998, the S&P 500 dropped by 11% due to fear of a global economic slowdown."

More papers on Bonds:

• Term Paper # 133627 : "Bonds"
• Essay # 137267 : "Illuminating the Intersections of Race, Gender and Class in Asia and Europe during the Seventeenth Century: A Review of Bitter Bonds by Leonard Blusse"
• Essay # 32838 : "Junk Bonds and LBOs"
• Essay # 74195 : "Babies, Bonds and Learned Behavior "

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