Please review my answers to question and give me input that I might not included. Especially for the ending on moody and nominal interest rate.

Part II: According to the textbooks discussion, the Fisher Equation can be expressed as Nominal Interest Rate Real Rate + Expected Inflation. The textbook further explains that the nominal interest rate on any financial instrument is a function of not only the real rate and expected future inflation, but also interest rate risk, default risk, taxability, and the lack of liquidity. Using again the Federal Reserves historical data on interest rates at http://www.federalreserve.gov/releases/h15/data.htm, find the following rates recorded for the latest month?

Federal Funds .14 8/2015 for 8/2015 Federal Funds

4-Week Treasury bills .04 8/2015 one month nominal treasury bill

6-Month Treasury bills .38 08/2015 six month nominal treasury bill

10-Year Treasury bonds 2.17 for 8/2015 10 year nominal treasury bill

20-Year Treasury bonds 2.55 for 8/2015 20 year nominal treasury bill

30-Year Treasury bonds 2.86 for 8/2015 20 year nominal treasury bill

Moodys seasoned

Corporate Bonds

Aaa 4.04 for 8/2015 Moodys seasoned Corporate Bonds Aaa

Baa 5.19 for 8/2015 Moodys seasoned Corporate Bonds Baa

Provide in the space below an explanation for the determination of the latest monthly rate on Moodys seasoned corporate bonds rated Baa based on the above rates and the factors that determine nominal interest rates.

According to Ross, Westerfield, Jaffe, and Jordan, (2014), there are three main credit assessments. Thgey are Standard and Poors, Moodys and Fitch. The rating a tool used for investors to determine future creditworthiness of the organization. A rating of Aaa corporate bond is considered an investement bond. It is a tool that acts to show performance of all bonds in the Aaa rating. It is considered an extremely good rating for organizations that have a high capacity to meet any commitments made financial. A Baa can meet commitments but economic conditions could effect the outcome.