URGENT!!Need Help with these problems! Ive been struggling to figure them out.

Use the following info!

1. Stock Market Index Information

S&P 500 (stock) index level

beginning of term: 3,871.74

end of term: 4,134.94

Nasdaq Composite (stock) index level

beginning of term: 13,777.74

end of term: 13,786.27

b) Interest Rate Information

Mortgage, fixed rate (30 year)

beginning of term: 2.73

end of term: 3.04

Federal funds rate

beginning of term: 0.08

end of term: 0.07

Commercial paper rate (90 days)

beginning of term: 0.08

end of term: 0.06

Certificate of deposit rate (3 month)

beginning of term: 0.07

end of term: 0.07 (discontinued 03/29/2021)

Treasury bill rate (13 weeks)

beginning of term: 0.04

end of term: 0.03

Treasury bill rate (26 weeks)

beginning of term: 0.06

end of term: 0.04

c) Bond Yield Information

Treasury long-term bond yield

beginning of term: 1.69

end of term: 2.16

Corporate bond yield

beginning of term: 2.45

end of term: 3.04 (last updated at end of March)

Junk bond yield

beginning of term: 7.52

end of term: 7.21

d) Use stock exchange quotations to record the stock price and dividend of one stock from each stock exchange in which you would like to invest

New York Stock Exchange

Name of firm: The Walt Disney Company

Stock Price

beginning of term: 180.23

end of term: 182.79

Dividend

beginning of term: N/A

end of term: N/A

Nasdaq Market

Name of firm: Amazon.com, Inc.

Stock Price

beginning of term: 3,331.00

end of term: 3,334.69

Dividend

beginning of term: N/A

end of term: N/A

Questions:

1. Explaining changes in interest rates (From Chapter 2)

1. Compare the 13-week Treasury Bill Rate (which is a proxy for short-term interest rates) at the end of the school term to the rate that existed at the beginning of the school term.

The 13-week Treasury Bill Rate was at 0.04 at the beginning of the school term but was lowered to 0.03 by the end of the school term.

1. Explain why interest rates have changed over the school term?

2. Comparing yields among securities (from Chapter 3)

a. What is the difference between the yield on high-quality corporate bonds and the yield on Treasury bonds at the end of the school term?

b. Explain why this premium exists?

c. What is the difference between the yield on long-term Treasury bonds and the yield on long-term municipal bonds at the end of the school term?

D. Explain why this difference changes over the school term?

3.Assessing the forecasting ability of the yield curve (From Chapter 3)

a. What was the difference between the 26-week T-bill yield and the 13-week T-bill yield at the beginning of the school term?

At the beginning of the school term the yield on the 26-week T-bill was 0.06, while at the same beginning of the school term the yield on the 13-week T-bill was 0.04. The difference between the two t-bills was 0.02 at the beginning of the school term.

b. Does this imply that the yield curve had an upward or downward slope at the beginning of the school term?

c. Assuming that this slope can be primarily attributed to expectations theory, did the direction of the slope indicate that the market expected higher or lower interest rates over the school term?

d. Did interest rates move in the direction predicted by the short-term portion of the yield curve over the school term?

4.Explaining shifts in the yield curve over time (From Chapter 3)

a.Describe how the yield curve changed over the school term. Explain the changes in expectations about future interest rates that are implied by the shift in the yield curve over the school term.