Personal Debt Decision
In Module 3, we learned about serial bonds where the principal is paid in installments and term bonds where the principal is paid in one lump sum at the end of the term. Think of celebrities, sports figures, TV or movie characters, etc. If you were to lend them money would you use serial bonds or term bonds? Why? Indicate two people for each type of bond.
As an example, I would consider lending Mary Poppins money with a term bonds because she always carries that big carpet bag, there must be some money in there for her to pay off the debt, don’t you think?
On the other hand, Donald Duck doesn’t even wear pants, so where is his wallet? I would go with a serial bond with him and make him pay back a little at a time.
Sheldon on the Big Bang Theory is always able to lend money to people, so I think he would be good for a term bond. But Penny is always short on money, so a serial bond for her.
For your response to other students, provide some witty comments that will move the conversation forward.