Effective annual returns for t-bills over the past year

Assignment Help Financial Management

Reference no: EM131673765

Financial Institutions and Money Project

Money Markets

Part 1: Treasury Bill Yields

Go to the website Treasury Direct Announcement and Results Press Releases page find Today's Auction Results

Click on Bill. Under the Competitive Results column, open the PDF's for the following Auction dates (2nd column): 01/03/2017; 03/06/2017; 05/01/2017; 07/03/2017; 09/05/2017

Assume a face value of $10,000.

A) For each date, fill in the table

B) For each date, calculate the discount yield, bond-equivalent yield, and the EAR. Be sure to reference cell in your calculations and apply the formulas in Excel rather than simply typing in answers.

C) Plot the relationship between the Date (x-axis) and the EAR (y-axis). Be sure to label the y-axis, x- axis, and chart title

In your report, comment on the level of effective annual returns for T-bills over the past year.

Part 2: Money Market Spreads

Go to the website - federalreserve datadownload H.15 Selected Interest Rates

Select Monthly Averages and click on Go to Download. Click on Download file and open it with Excel.

D) List the interest rates for the Federal funds effective rate and the 3-month Treasury bill secondary market rate. Calculate the spread as the difference between the Fed funds rate and the 3-month T-bill.

In your report, comment on the rates and the spread over time (e.g., is it constant over time?).

E) List the interest rates for the 30-Day, 60-Day, and 90- Day AA Nonfinancial Commercial Paper.

F) Plot the relationship between the Date (x-axis) and the Rate (y-axis). Be sure to label the y-axis, x- axis, and chart title

In your report, comment on the general pattern of the commercial paper rates. Also identify if the spread between the rates has increased or decreased over the period examined.

Attachment:- project-2-money-markets.xlsx

Attachment:- Money-markets.rar

Reference no: EM131673765

Questions Cloud

What was his gross pay last week from both the jobs : He worked for 6.25 hours last week at his second job that pays $7 an hour. What was his gross pay last week from both the jobs?

Analyze the advantages of the choice you made : Analyze the advantages and disadvantages of the choice you made. Explain why an MNC may invest funds in a financial market outside its own country.

Compute the margin of safety in sales dollars : Margin of Safety and Operating Leverage Espanola Company produces a single product. The projected income statement for the coming year is as follows.

Company in terms of an ethical communications climate : Explain what is expected at this company in terms of an ethical communications climate.

Effective annual returns for t-bills over the past year : FINC 6362 - calculate the discount yield, bond-equivalent yield, and the EAR. Be sure to reference cell in your calculations and apply the formulas

Forecast for year using exponential smoothing with trend : What is the forecast for this year using exponential smoothing with trend if a = 0.5 and B = 0.3?

What are key assumptions that need to be true to make idea : What are the key assumptions that need to be true to make your idea work? Why is this important to make your idea work?

Compute the units that must be sold to break even : Basic Cost-Volume-Profit Concepts Naismith Company produces a single product. The projected income statement for the coming year is as follows.

Strategic importance of forecasting at your organization : Discuss the strategic importance of forecasting at your organization (or one with which you are familiar).

Reviews

len1673765

10/10/2017 4:38:38 AM

The goal of this project is to explore the topic of money markets, in the context of interest rates and spreads. The project requires you to work in Excel with the provided spreadsheet. Be sure to fill in the yellow boxes in the Excel file and follow all instructions for full credit. In addition, type up a 1-2 page report in Word with a separate section for the introduction (description of the project), findings (answer assignment questions, plots, etc.), and conclusion (summary). Upon completion, please submit both your Word report and Excel file to blackboard. This is an individual project so be sure to submit your own work. Each question (A, B, C, D, E, F) is worth 10 points (total of 60 points), the report 10 points, and the Excel file 5 points.

Write a Review

Required(*) Message

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages