Finance

you will research and analyze current information (that is, within the past two months) on government securities.

Step 1: Go to a financial Web site to do your research. The following are three suggested sites, but you may use others. Be sure to cite your sources!

• finance.yahoo.com
• http://www.google.com/finance
• moneycentral.msn.com

Step 2: Research current information (within the last two months) on the yields and maturity for:

1.     U.S. treasuries

2.     Municipal bonds

3.     Corporate bonds

Required:

• Discuss what the pure expectations theory would imply about the yield curve.
• Compare and contrast the yields and maturities for each of the securities.
• Discuss which you would hold and why relative to interest rate risk.

Deliverables:

By Tuesday, June 11, 2013, submit your responses to this Final Project assignment to the W4: Assignment 2 Dropbox. Your submission may be in a 3–6 page Microsoft Word or Excel document. Include a Microsoft Excel document that illustrates your calculations. You may use the formulas embedded in Microsoft Excel and/or a financial calculator for these calculations.