Buying Bonds, Basic Bond Introduction, Investing Lesson Plan

TEACHING AND LEARNING BOND MARKET BEGINNING INVESTING WORKSHEET - KIDS ADULTS MONEY INVESTMENT - INTRODUCTION TO PURCHASING BONDS LESSON PLAN BUYING AND SELLING A BOND EXERCISE BASIC THEME UNIT BONDS 101 LESSONS

BUYING CORPORATE BONDS

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An introduction to bonds and buying corporate bonds. Basic practice calculating bond purchases.

LESSON LEARNED

When purchasing bonds you pay the bond price times the number of bonds purchased.

OTHER SKILLS REINFORCED

Math - Multiplication

SUGGESTED

GRADE LEVELS

3+

Kids through Adults

Also customizable for all students being introduced to bonds and investing.

Suggested Buying Bonds Lesson Plan

Begin with an introductory lesson about bonds. This lesson uses corporate bonds to introduce the concept of bonds to students.

Corporate bonds are bonds issued by companies. They are usually riskier then government bonds, and therefore have a higher interest rate. Corporate bonds may be issued for any term, and are usually issued in multiples of $1000 or $5000.

A bond represents owning debt of in a company. For example if you own 1 bond from McDonalds, then McDonalds owes you money. Companies issue bonds to help finance their business operations or investments.

Let's now practice buying bonds with this worksheet.

Buying Bonds Worksheet Instructions

This is a simple worksheet to teach students that when you buy a company's bond, you must pay the price per bond times the number of bonds purchased.

There are two versions of this worksheet. Once is for kids, or younger students (includes face pictures). The other version is for older students.

For each bond, have the student calculate: price per bond x bonds purchased.