Use www.wsj.com to answer the following:

Find the prices of coupon strips. Use these prices to plot the term structure. If the expecations theory is correct, what is the expected one year interest rate three years hence?

Find a three or four year bond and construct a package of coupon and principal strips that provides the same cash flows. The law of one price predicts that the cost of the package shoul be very close to that of the bond. Is it?

Find a long term treasury bond with a low coupon and calculate its duration. Now find another bond with a similar maturity and a higher coupon. Which has the longer duration?

Look up the yields on a 10 year nominal treasury bonds and on TIPS. If you are confident that inclation will average 2% a year, which bond will provide the higher real return.

Bond transactions are reported on FINRAs TRACE service, which was the souce of the date for trade 3.6. use the advanced search facility in TRACE to find bond process for Johnson and Johnson, Walmart, Disney, suntrust abnks, and us steel. If possible, exclude callable isues that the company can buy back. Have the bond ratings changed? What has happened to the yields of these companies bonds? (you will find that bonds issues by the same company may have very different yields, so you will need to use your best judgment to answer this second question.)