Eddie Ary

The prices of bonds are determined mainly by interest rates. When interest rates go up, bond prices fall and vice versa. Exchange rates also influence prices when investing in a foreign bond. This short exercise is designed to vividly illustrate the effect of interest rates and exchange rates on bond prices while at the same time providing practice in computing the price of bonds using an online time value of money calculator.

A major part of making wise investment decisions is knowing how a given factor is likely to affect stock prices. This tutorial explores the likely effect of the following factors on stock prices: lower interest rates, a drop in unemployment, an increase in dividends, a decrease in earnings, and stock splits.

Students are asked to watch two brief videos and answer five questions which correlate the videos and help them apply the messages of the videos to their lives. Public school teachers will likely want to either omit or modify the fifth question.