Chapter 1
The giant IOU machine
Chapter 2
Uncle Sam's piggy bank
Chapter 3
Corporate cash and municipal magic
Chapter 4
The yield curve and the economic crystal ball
YOUR GOAL
Master of The secret life of the bond market
Ch 3 · Corporate cash and municipal magic
diego87 Municipal and Corporate Bonds
We built the Golden Gate with a municipal bond (Built it strong!) / And we paid it off with toll booths on the bay (Yeah, they paid the way!)
diego87 Unlike the federal government, cities and corporations can go bankrupt, leading to bond defaults where investors lose money.
diego87 Even the world's richest companies issue corporate bonds to fund research, buy back stock, or build massive headquarters.
BETA
diego87 Match bonds to public projects to learn how the government borrows money and pays interest.
Fun Fact
Tax-free perks: Municipal bonds are incredibly popular with wealthy investors because the interest payments are usually exempt from federal income taxes.
Glossary
municipal bond (noun)
A debt security issued by a state, municipality, or county to finance local public infrastructure projects. New York City issued the first U.S. municipal bond in 1812 to finance canal construction.
A debt security issued by a state, municipality, or county to finance local public infrastructure projects. New York City issued the first U.S. municipal bond in 1812 to finance canal construction.
Quiz
Which massive city famously defaulted on its municipal bonds during a 2013 bankruptcy?
Quiz
What is it called when a bond issuer fails to pay the promised interest or principal?
Quiz
What is the common nickname for bonds issued by local cities, counties, or states?
Quiz
Which international institution issued the very first official Green Bond in 2008?