There are zero reasons not to learn about zero coupon bonds. Given information about the interest rate and closing price of a zero coupon bond, future investors determine the purchase price of the bond. They then consider the relationship between bond prices and yields.

Concepts

government bonds, interest rates

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Additional Tags

math

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Instructional Ideas

• Ask a financial advisor to discuss bonds and other financial instruments
  

Classroom Considerations

• Learners must be familiar with how to work interest rates
• Knowledge of exponential functions is necessary
  

Pros

• Worksheet is available in Word format, allowing for edits if necessary
  
• Provides an answer key for the task
  

Cons

• None

Common Core

HSA-CED.A.2