Go to a financial Web site to do your research. The following are three suggested sites

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:



U.S. treasuries

Municipal bonds

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.

Additional Requirements



Other Requirements: 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.