Q2 - Building a Yield Curve

Now that you have some preliminary information on each issuer, your task is to ask your broker what bonds they have in stock. They give you the following list of bonds with maturity date and yield to maturity.

Issuer

Maturity Date

Years To Maturity

Yield to Maturity

Apple

30-Jun-20

0.38

1.00

Apple

30-Jun-22

2.38

1.30

Apple

30-Mar-25

5.13

1.70

Apple

30-Mar-27

7.13

2.00

Apple

30-Sep-30

10.64

2.40

BHP

30-Mar-20

0.13

1.00

BHP

30-Sep-21

1.64

1.40

BHP

30-Dec-22

2.88

1.60

BHP

30-Jun-25

5.39

2.10

BHP

30-Jun-27

7.39

2.50

For reference, they have also included comparative information for the Australian Government bond curve.

Issuer

Maturity Date

Years To Maturity

Yield to Maturity

ACGB

30-Jun-21

1.38

0.50

ACGB

30-Jun-23

3.38

0.85

ACGB

30-Jun-25

5.39

1.00

ACGB

30-Jun-27

7.39

1.10

ACGB

30-Jun-29

9.39

1.10

Using this data - on a single chart - I need a yield curve for each corporate issuer and the Australian Government. (Hint: A yield curve charts the time to maturity vs the yield)