Please answer each of the following questions in detail and provide in-text citations in support

of your argument. Include examples whenever applicable. Make sure to provide examples for

each of the questions below.

1. Please explain the determining factors of the interest rate and make sure to include

hypothetical examples for better clarity.

2. Describe the meaning of the yield curve. Verify how the shape of the yield curve

provides predictions on the economy in future years. Please visit the US Governments'

Treasury site, retrieve the data on the U.S. treasury rates and construct the yield curve.

Indicate the date of retrieving the data.

3. Please explain the terms associated with the bonds, namely, corporate bond, municipal

bond , treasury bill, par value, coupon rate, coupon payment, time to maturity, prevalent

interest rate, market value and yield to maturity (YTM).

4. Explain and provide examples of how variations in the prevalent interest rate affects

market value of a bond.

5. Explain how you would value a stock. Provide an example of valuation of a stock based

on retrieved real data. Include evidence of the retrieved data in your answer. Compare

your valuation with the actual price of the stock at the designated time for your

valuation.