Part Two: Final Project 3:
Government Securities In this part 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: 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. Deliverables: 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.