Bond, James Bond

Already to the third chapter in the semester. That means it's test time. The first test is scheduled for next Thursday. We spent some of the time discussing bonds, interest rates, buying and selling at a different rate than the market rate.

Hopefully I said everything correctly last night. I always get going a hundred miles a minute and say things confusingly. I'd like to pretend I do it on purpose just to make sure everyone is awake but don't know if I can honestly feel good about the deception.

The main points in the chapter revolve around a company that is issuing bonds. So put yourself in the issuing company shoes. Not the one buying bonds. If you issue at a discount that means you don't receive as much money as you will owe when the bond matures. Thus it increases interest expense over the life of the bond. If you issue at a premium you get more money than what you owe at maturity date. Thus decreasing overall interest expense. In all reality, The interest rate you pay overall is pretty well the market rate when the bonds are issued. Hopefully the homework solidifies the concepts.

My favorite quote on interest:

“Interest never sleeps nor sickens nor dies; it never goes to the hospital; it works on Sundays and holidays; it never takes a vacation; it never visits nor travels; it takes no pleasure; it is never laid off work nor discharged from employment; it never works on reduced hours. … Once in debt, interest is your companion every minute of the day and night; you cannot shun it or slip away from it; you cannot dismiss it; it yields neither to entreaties, demands, or orders; and whenever you get in its way or cross its course or fail to meet its demands, it crushes you.”
- J. Reuben Clark

Glad there were several people asking questions. I'm sure everyone had the same questions. It's helpful to the class as a whole. Didn't see Debye in class. Anyone know her status? Tammy's been quiet this semester. Must still have a sore head from her fall. Tune must follow current events as he knew about Icelands banking fiasco. Another link. Josh says his pathology class rocks. I sure everyone says the same about accounting. Mary-Liz decided she'd create a work of art by doing a combined journal entry with interest expense for discounts/premiums. That's what I'm talking about. Fun stuff.

I'll have to do another blog to talk about Nikki's article from WSJ. Probably do that on Monday.

Homework:

•P15-31A
•P15-32A
•P15-33A
•P15-38B
•P15-39B
•P15-40B

Homework chapter 14

Struggled last night with a couple of questions but hopefully didn't get everyone totally confused. I think we got to a point where we had all the questions answered. Finished homework for chapter 14. Treasury stock, stock splits, dividends etc. I could see some people going cross eyed. Hopefully the worst is over.

Have chapter 15 coming up which is on bonds. Here are a couple of sites that have bond infomation. Wikipedia, Yahoo, and basics on bonds.

Chapter 15 is typically a difficult chapter to get your head around. Everything seems opposite. Please read the chapter before coming to class.

No quiz but one will be coming in the bond chapter. Lucky Ashely was stuck counting stock instead of sitting in class. Max got 2 questions right last night. High five. Josh has a good calculator that always gives the right answers. Did you do the homework before coming to class?

I find that those that actually do the homework before class have a huge advantage over those that don't. Just makes sense.

Let me know if you'd like the homework spreadsheet for last chapter and I'd be happy to send it out. (not the one for next chapter yet).

Homework:

Read chapter 15

Chapter 14

Good stuff last night. How much more fun can you have in talking about stock dividends, splits, treasury stock and retiring stock. A lot of good interaction and discussion. I think I went off on about 6 different tangents the first one being this blog and recommended books etc. Funny how I can talk for 10 mins and finally realize I'm on a tangent. You guys do that on purpose don't you.
Question about reverse stock splits. Here are a couple of resources. Wikipedia, MSN Money, and Motley Fool.

Julie referenced a joke I had last semester after we discussed putting *Assumed number on the test if you don't know anything. Here is the joke. Click on picture to see it clearer. So if you don't know anything at least amuse me. I would have given at least 1 mark for this for creativety. ha.


Josh almost stayed awake for the entire class. Ashely made it known that we never get out early so the class just better write off their life from 7 pm to 8:50 pm each T and Th. Irina was too nice to offer my former students less for their textbook. Asked Debye a question for the first time and she passed with flying colors. Hadn't heard her speak before then. Some students are more under the radar than others. Tune packs up his books at 8:30 pm. My goal this semester is to be so interesting that he actually forgets to pack up early (at least during one class period.)

Homework:
•E14-16
•P14-26A
•P14-27A
•P14-29A
•P14-39B

Homework Chapter 13

Well, we spent longer doing homework that I thought we would but hopefully doing the questions in class is beneficial. I tend to drag questions out and talk really slow and boring like but I didn't notice anyone nodding off none the less.

Glad no one yelled at me for doing that formula wrong. I remember I did the same thing last year and the students got mad because I was confusing them. (well one or two students). It's a learning process. Hopefully going through the questions make it easier to remember the concepts.

We will start chapter 14 next class.

Homework: Read Chapter 14

Chapter 13 Lecture Finale

Had a few people missing last night (Penny, Debye, Julie, Tami) but the crowd that was there were animated. Started off by talking about the stock market which led to buying or selling stock. Discussed IPO's and reasons companies sell stock. Max gave us all a hot stock tip. I followed up with the best stock tip I know which is "buy low, sell high". Discussed stocks, mutual funds, broad based index funds, etc. Probably went off on a few too many tangets but everyone seemed to follow along easily enough.

Discussed declaring dividends, paying dividends to preferred and common stockholders.

Nikki used her extreme faith and prayers to have the computer turn off. She tried to pass it as a sign that we should be done however after a quick reboot we were back in business.

Found out Mary-Liz lives up in 10 Lakes by Eureka and has a 2 hour drive to get home at night. Now that's dedication. I better make sure class is worth all that driving. Iyrna works at a bank. Tune is one of the Semitool surviors (for now). Josh is an appraiser.

Finished (almost) the lecture for chapter 13. Will go over homework in the next class.

Homework:

Email me so I can have your contact info (If you haven't already)

•P13-29A
•P13-30A
•P13-32A
•P13-33A
•P13-41B
•P13-43B

First class of 2009 spring semester

Always exciting to start a new semester. Interesting that there are only 5 students from the first semester night class and 10 from either the day time schedule or returning after a few years break. Hope everyone can stay awake at such a late hour.

Great to have a bunch of new students so I can tell my stories all over and not worry if everyones heard them before. Found out Josh is an appraiser. I hope I don't call Michael, Max all semester. Nikki must know Michael somehow as they were sitting together. She usually sits in the front by Tammi. Penny sounds smart. Needs to get on the role as I had to write her name in. Mary-Liz must not be from Kalispell as she said "People around here".

We went through the syllabus and calendar. Discussed the project a bit which is analyzing a company of their choice. I'll give further detail around chapter 17.

Started chapter 13 which is about corporations. Had a few questions about Par Value. Click on the par value link and you can see more information regarding this.

Heard that Julie is heading to Seattle to support her father who is having open heart surgery. Our thoughts and prayer go with her.

On the other hand Tami is going to Arizona to play. Catch some sun for us.

APB goes out to Carrie K, Amanda B (did she have her baby) and Ashley H. If you see them tell them the class sounds easier than ever and they should sign up for another semester of fun.

Homework: Read Chapter 13 (missed telling people this, we'll see who actually reads this blog)

Also, email me your email address so I can have a contact for you.

Back to school

Had a good semester break. Went skiing several times, bum leg and all. Looking forward to a great semester. I see we have 13 students signed up right now so who knows what we'll end up with.

I'm at a adjunct faculty opening semester session. I forget how it feels to be a student so it's good for my soul to sit through a few sessions like this every year. Remind me to go off on tangents more often to keep things interesting.

Classes start next Tuesday so we'll see everyone then.