文档介绍：Chapter 11
Saving and Investing Options
Slide 2
What Are Low-Risk Savings Options?
11-1 Low-Risk Choices
Liquid savings include cash or investments that can be changed into cash quickly.
Savings and checking accounts are liquid.
Illiquid investments cannot be converted to cash quickly or without a penalty.
Slide 3
What Are Low-Risk Savings Options?
11-1 Low-Risk Choices
Savings accounts
Money market accounts
Two types: deposit account or fund
Certificates of deposit
Money set aside for specific length of time at a fixed interest rate
Life insurance savings plans
Borrow against the policy’s cash value
Brokerage accounts
An account at an pany
Slide 4
What Are Low-Risk Investing Options?
11-1 Low-Risk Choices
Bonds
A bond is a loan that a buyer makes to a bond issuer.
Government and corporations issue bonds.
The face value is the amount the bondholder will be repaid on the maturity date.
The maturity date is the date the borrowed money must be repaid.
Bonds can be purchased at a discount or premium.
Slide 5
11-1 Low-Risk Choices
Return on a Corporate Bond
Corporate Bond
Face value: $5,000
Discount rate: 4%
Coupon rate: 4% yearly (paid semiannually)
Term: 2 years
 
Purchase price:
$5,000 × = $200 discount amount
$5,000 $200 = $4,800 discounted purchase price
 
Semiannual interest:
$5,000 × = $200 interest per year ($100 semiannual payment)
$200 × 2 years = $400 total interest received
 
Return on investment:
At the end of the second year, the bond is redeemed for $5,000 (face value).
 
$ 5,400 total amount received ($5,000 face value + $400 interest)
4,800 amount invested
$ 600 total profit in dollars
 
$600 ÷ $4,800 = = % total return on investment
Slide 6
munications Skills
Bad News Messages
Use an indirect approach.
In the first paragraph, refer to the issue and give facts or logical reasoning.
In the second paragraph, state the denial or other bad news.
In the third paragraph, state the action you want the reader to take