Effect of changes in the interest rate on bonds issued

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Reference no: EM132065678

1. Search the Bloomberg Professional System for the assigned Treasury bond. Describe the following characteristics of the bond: issue date, term, coupon rate, issue price, issue amount, minimum required (minimum piece) and credit rating and yield to maturity. This must be the one corresponding to the date of issue.

2. Search the Bloomberg Professional System for the bonus assigned in the following dates: 1) November 2016 and 2) April 2018.

3. Describe the price and yield at yield (maturity) of the bond in November 2016 and April 2018. Compare these with the bond maturity to the bond issue date.

4. Explain the change found in the previous step in the yield to maturity, given the change in date from November 2016 to April 2018. The analysis must take into consideration the macroeconomic variables studied in class: changes or expectations of change in rates of interest, inflation expectations, profitability and risk of other markets and expectation of economic condition.

5. The analysis performed in the previous step should integrate three news published in the period under study. Include the reference of the three news items in the APA style.

Reference no: EM132065678

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