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In your role as a financial advisor at UNLV Securities you have been asked by one of your clients to provide an overview of some

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In your role as a financial advisor at UNLV Securities you have been asked by one of your clients to provide an overview of some key market statistics. From your past interactions, you know that this client's investment horizon is about 30 years, and that he is willing to take a fairly aggressive risk posture. For questions (3) through (6), use the attached market data to compute each of the statistics indicated below. In addition to showing your calculations, explain why you chose the particular financial instrument and maturity you did as input data for your calculation. (When multiple data alternatives are available, you will want to choose the one likely to be most relevant for this particular client and to explain this relevance when justifying your data choice.) Market Data maturity (yrs) yield (%) U.S. Treasuries 2 2.25 10 2.75 30 3.00 TIPS 2 0.05 10 0.75 1.03 Municipal Bonds investment grade) 10 2.56 30 3.26 Corporate Bonds investment grade) 3.42 30 4.06 Corporate Bonds ("high yield") 10 8.44 30 9.83 30 10 6. Based on these data, what would you expect the rate of inflation to be over the next two years if you believe all investors are risk neutral? i. data chosen and justification ii. calculation In your role as a financial advisor at UNLV Securities you have been asked by one of your clients to provide an overview of some key market statistics. From your past interactions, you know that this client's investment horizon is about 30 years, and that he is willing to take a fairly aggressive risk posture. For questions (3) through (6), use the attached market data to compute each of the statistics indicated below. In addition to showing your calculations, explain why you chose the particular financial instrument and maturity you did as input data for your calculation. (When multiple data alternatives are available, you will want to choose the one likely to be most relevant for this particular client and to explain this relevance when justifying your data choice.) Market Data maturity (yrs) yield (%) U.S. Treasuries 2 2.25 10 2.75 30 3.00 TIPS 2 0.05 10 0.75 1.03 Municipal Bonds investment grade) 10 2.56 30 3.26 Corporate Bonds investment grade) 3.42 30 4.06 Corporate Bonds ("high yield") 10 8.44 30 9.83 30 10 6. Based on these data, what would you expect the rate of inflation to be over the next two years if you believe all investors are risk neutral? i. data chosen and justification ii. calculation

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