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research and analyze current information (that is, within the past two months) on government securities. Research current information (within the last two months) on the

research and analyze current information (that is, within the past two months) on government securities. Research current information (within the last two months) on the yields and maturity for:

  1. U.S. treasuries
  2. Municipal bonds
  3. Corporate bonds

U.S. Treasuries
Maturity 3 month 6 month 2 year 3 year 5 year 10 year 30 year
Yields 0.02 0.07 0.31 0.58 1.37 2.62 3.69
Municipal Bonds
Maturity 2 year AAA 2 year AA 2 year A 5 year AAA 5 year AA 5 year A 10 year AAA 10 year AA 10 year A 20 year AAA 20 year AA 20 year A
Yields 0.48 0.52 0.68 0.97 1.33 1.64 2.53 2.72 2.83 3.78 4.08 4.79
Corporate Bonds
Maturity 2 year AA 2 year A 5 year AAA 5 year AA 5 year A 10 year AAA 10 year AA 10 year A 20 year AAA 20 year AA 20 year A
Yields 0.60 0.78 1.66 1.88 2.08 3.48 3.41 3.73 4.96 4.38 4.71

Required:

  • Discuss what the pure expectations theory would imply about the yield curve.
  • Compare and contrast the yields and maturities for each of the securities.
  • Discuss which you would hold and why relative to interest rate risk.
I don't know if the information I have found is correct. If you could let me know if that is correct and help with the required it would be much appreciated.

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