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BY THURSDAY, 11:59 PM: After completing leaming activities answer the following questions in complete sentences. 1. 2. 3. Find the current yield of the
BY THURSDAY, 11:59 PM: After completing leaming activities answer the following questions in complete sentences. 1. 2. 3. Find the current yield of the most recent T-bill issue (any maturity less than 1-year; provide the source of this information). Assume that the annualized interest rate is expected to increase by 3 percent (for the matching period) and you are interested in purchasing a newly-issued T-bill. Based on this information, how much should you pay for the new T-bill issue? (see textbook section 6-3) Compare the yield of a short-term T-bill (less than a year) with a long-term one (more than 10 years). You are interested in safe short-term investment (less than a year). Should you consider using some of your funds to invest in long-term Treasury securities? Provide reasoning for your decision. (see textbook section 6-3b) Find the most recent (90 days) common equity retum for any large company (relatively safe). Compare this return to the performance of the treasury with the same maturity. Why common equity is not a money market security? Explain why common equity is a good choice for long-term investment? (see textbook section 6-1, also google and provide your opinion it is an open-ended question)
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