TAKING A CLOSER LooK line resources to work on this chapter's questions. Please note that website information Use changes ov er time, and these changes may limit your ability to answer some of these questions. ov NG YAHOO FIRANCE'S BONDS CENTER TO UNDERSTAND INTEREST RATES AND THER IMPA USING ON BOND VALU n Chapter 6, we lonked at the determinants of market interest rates, and in Chapter 7 we looked at how interest rates impact bond valuation. These questions are designed to aid with your understanding of interest rates and their implication for valuing debt securities. Here, we will access the Internet website Yahoo Finance Bonds Center (finance. yahoo.com/bonds) to answer the following questions 1. Once you've accessed the Yahoo Finance Bonds Center screen, click the "Composite Bond Rates" tab. Plot a yield curve for Treasury and corporate bonds. Compare the yield curves today and one month ago. Has the shape of the Treasury yield curve changed meaningfully over the past month? If so, what recent events could possibly explain this shift? 2 Has the spread between corporate and Treasury bonds changed meaningfully over the past month? If so, what factors could possibly explain this shift? 3 In today's market does the spread between corporate and Treasury bonds vary depending on bond maturity? If so, what factors could possibly explain these differences? 4. Now, click the "Bond Screener" tab. Run a quick screen where you select corporate bonds with a 10-year maturity. Looking at this set of bonds, controlling for other factors, describe briefly how the yields to maturity of the bonds vary according to bond rating and whether the bonds are callable the bond was issued, the coupon rate, current and yield to maturity. Based on this information, has the bond's yield to maturity increased a premium? 5. Click the name of any selected bond. Note the date that price, selling at a discount, at par, or at TAKING A CLOSER LooK line resources to work on this chapter's questions. Please note that website information Use changes ov er time, and these changes may limit your ability to answer some of these questions. ov NG YAHOO FIRANCE'S BONDS CENTER TO UNDERSTAND INTEREST RATES AND THER IMPA USING ON BOND VALU n Chapter 6, we lonked at the determinants of market interest rates, and in Chapter 7 we looked at how interest rates impact bond valuation. These questions are designed to aid with your understanding of interest rates and their implication for valuing debt securities. Here, we will access the Internet website Yahoo Finance Bonds Center (finance. yahoo.com/bonds) to answer the following questions 1. Once you've accessed the Yahoo Finance Bonds Center screen, click the "Composite Bond Rates" tab. Plot a yield curve for Treasury and corporate bonds. Compare the yield curves today and one month ago. Has the shape of the Treasury yield curve changed meaningfully over the past month? If so, what recent events could possibly explain this shift? 2 Has the spread between corporate and Treasury bonds changed meaningfully over the past month? If so, what factors could possibly explain this shift? 3 In today's market does the spread between corporate and Treasury bonds vary depending on bond maturity? If so, what factors could possibly explain these differences? 4. Now, click the "Bond Screener" tab. Run a quick screen where you select corporate bonds with a 10-year maturity. Looking at this set of bonds, controlling for other factors, describe briefly how the yields to maturity of the bonds vary according to bond rating and whether the bonds are callable the bond was issued, the coupon rate, current and yield to maturity. Based on this information, has the bond's yield to maturity increased a premium? 5. Click the name of any selected bond. Note the date that price, selling at a discount, at par, or at
