INSTRUCTIONS

Bloomberg Yield Curve additional information.

$1.$ Follow video for Bloomberg Login

$2.$ Follow video for Bloomberg Yield Curves

$3.$ Take screen shot of your unique day And investment selection yield curves from Bloomberg screen; you can save the file using this naming convention before submitting your work: LastName$\_$FirstName $-$ Section #$.$xlsx

$4.$ Be sure to read both tabs $/$ sheets on excel FIN $331$ Bloomberg Assignment Template Yield Curve spreadsheet.

$5.$ Select two bond types out of the five you graphed above $($Treasuries$,$ A$,$ BBB$,$ BB and B bonds$).$

$6.$ For each of these selected types, calculate the price of an annual pay bond with a Face Value of $$1,000,$ a coupon of $3\%,$ and a time to maturity of $10$ years $($FV$=1000$; PAYMENT $=30$; N$=10).$ You need to use the information from the chart to find the appropriate yield to maturity $($I$/$Y$)$ to use for these two bonds. Then use your TI BA II PLUS calculator to calculate the Present Value.

$7.$ In the green box underneath, comment on the two prices you have found. In particular, explain how and why they are different. SPECIFICALLY, PROVIDE $4$ OR MORE SENTENCES ON:

A$.$ what is the yield curve shape telling us$?$B$.$ what is going on with 'credit risk' $($the Default Risk Premium$)$ in the $2$ securities you selected and what is the Bond Rating Differences telling us$.$

C$.$ why are the prices $($present values$)$ of the $2$ securities you selected different.

FIN $331$ Bloomberg Assignment Template Yield Curve.xlsx

Hi$,$ welcome to the Bloomberg assignments.

In the next tabs$,$ you will find the information necessary to complete your assignments in panels of this color.

In Blackboard, you will also find documents

And you will find panels in this color where you can record your answers.

Do your best to address every question. You must both record the data you retrieve from Bloomberg and comment on their values

Once your work is done, save the file using this naming convention before submitting your work.LastName$\_$FirstName $-$ Section.xlsx

Bloomberg, go to the GC function and graph the yield curves for the following classes of bonds:

$1.$ U$.$S$.$ Treasuries $-$ Curve I$25$

$2.$ U$.$S$.$ Corporate bonds with A credit rating $-$ Curve BS$74$

$3.$ U$.$S$.$ Corporate bonds with BBB credit rating $-$ Curve BS$75$

$4.$ U$.$S$.$ Corporate bonds with BB credit rating $-$ Curve BS$193$

$5.$ U$.$S$.$ Corporate bonds with B credit rating $-$ Curve BS$195$

Take a screenshot from Bloomberg and paste it in the space below then scroll down for further questions.