Using the interest rate data and financial statements for XYZ, Inc. posted below, answer the questions below using Microsoft Excel. You may want to refer to the footnotes to the financial statements online for additional clarification/information if necessary.

1. Review the interest rate data provided for 2017. Assume that the 10-year treasury rate is the applicable measure of return for excess cash balances. Do you agree with the average 2017 rate specified(note-you can disregard the slight time period difference between the calendar year and XYZ's fiscal year)? Perform a calculation of the rate you would use (referencing only the materials provided) that either confirms the rate given, or provides an alternative. Support your answer.

Acrobat Reader File Edit View Window Help $ 100% Mon 18:05 QE O Interest Rate and Home Depot Fin Info.pdf H T / 16 95.7% do Share Search 'Underline' Convert PUI Files to Word or Excel Online FRED - Long-Term Government Bond Yields: 10-year: Main (Including Benchmark) for the United States Select PDF File 2.60 Interest Ra...in Info.pdf X Convert to 2.55 Microsoft Word (.docx) v Document Language: 2.50 English (U.S.) Change Annual Average = 2.36% 2.45 Convert Percent 2.40 2.35 Lo Create PDF Edit PDF 2.30 Comment 2.25 Combine Files 2.20 Organize Pages v 2.15 Redact Mar 2017 May 2017 Jul 2017 Sep 2017 Nov 2017 Convert and edit PDFs Shaded areas indicate U.S. recession Source: Organization for Economic Co operation and Development myf.red/g/1020 with Acrobat Pro DC Start Free TrialHome Tools Interest Rate and... x Sign In H T 2 / 16 Jim 95.7% do Share Search 'Underline' Convert PUI Files to Word or Excel Online Select PDF File FRED Graph Observations Federal Reserve Economic Data Interest Ra...in Info.pdf X Link: https://fred.stlouisfed.org Help: https://fred.stlouisfed.org/help-faq Convert to Economic Research Division Federal Reserve Bank of St. Louis Microsoft Word (.docx) v IRLTLTO1USM156N Long-Term Government Bond Yields: 10-year: Main (Including Benchmark) for the United States, Percent, Monthly, Not Seasonally Adjusted Document Language: Frequency: Monthly English (U.S.) Change observation_date Rate 2017-01-01 2.43 100 0.0243 1.002025 2017-02-01 2.42 100 0.0242 1.00404575 2017-03-01 2.48 100 0.0248 1.006120778 2017-04-01 2.30 100 0.023 1.008049176 Convert 2017-05-01 2.30 100 0.023 1.009981271 2017-06-01 2.19 100 0.0219 1.011824487 2017-07-01 2.32 100 0.0232 1.013780681 2017-08-01 2.21 100 0.0221 1.015647727 2017-09-01 2.20 100 0.022 1.017509747 Lo Create PDF 2017-10-01 2.36 100 0.0236 1.01951085 2017-11-01 2.35 100 0.0235 1.021507392 2017-12-01 2.40 100 0.024 1.023550407 Edit PDF 2.36% Comment Combine Files Organize Pages v 2 Redact Convert and edit PDFs with Acrobat Pro DC Start Free Trial