Needles/Powers 2002e Financial and Managerial Accounting

Needles Accounting Resource Center

Financial & Managerial Accounting , 2002 Edition
Belverd E. Needles, Jr., DePaul University
Marian Powers, Northwestern University
Susan Crosson, Santa Fe Community College

Internet Research Activities
Chapter 11: Long-Term Liabilities

Reading the Bond Markets

Instructions: Use an investment site to locate information for a bond selling at par, at a premium, and at a discount. Note the name of the company, the face interest rate, the year the bond is due, the current yield, and the current closing market price.

Investment Sites for Bond Analysis:

Sample Bonds (6/19/2001)

Company	Face Int. Rate	Year Due	Current Yield	Current Closing Market Price
El Paso Electric Company	8.25%	2003	7.924%	104.115
U.S. Treasury Note	5.50%	2001	5.478%	100.082
Ford Motor Company	5.80%	2009	6.127%	94.659

Extended Research Activities

1. Read the Vanguard Group lessons under "Introducing Bonds"

Identify the differences between US Government Bonds, Corporate Bonds, and Municipal Bonds.
Explain how bonds are rated.
Identify the risks and rewards of owning a bond.
Explain the purpose and objective of mutual bond funds.

2. Read the BusinessWeek online article entitled "Japan's Perilous Bet on Bonds"

Based on the article, why have Japanese government bonds risen in price while yields have fallen?
Identify those events described which influence bond prices.
Why are Japanese investors buying more Japanese government bonds?

Either print out your answers for submission or email them to your instructor.





	ACE Practice Tests

	Chapter Summaries

	Check Figures

	Company Links

	Accounting Transaction Tutor

	Learning Objectives

	Ready Notes

	Business Readings

	Internet Research Activities

	Toys'R'Us Annual Report Activities

	Fingraph Financial Reporting and Analysis Cases Using CPAnalyst(r)



	SMARTHINKING

	Web Links