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!

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 36 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.