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COMPARING YIELDS OF DEBT SECURITIES

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COMPARING YIELDS OF DEBT SECURITIES

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1)    In this Module we deal with short term money market securities (including Treasury bills),  long term Treasury, Municipal bonds and Corporate bonds which are all debt securities and not part of Equity securities we will cover in the fourth and final Module assignment. For your writing assignment, answer the following questions: 1.     ESSAY – Step1(1 page): COMPARING YIELDS OF DEBT SECURITIES In a table or spreadsheet find a recent publication (eg WSJ I distributed or can find online) that provides current yields and find their yields in same month 1980 or 1981 (November 2020 versus November 1980 or 181). Best place Yield on Bonds data is FRED. Stlouisfed.org What are the average yields for money market securities, specifically 3-month T-Bills, 3-month commercial paper and 3-month CDs.  Compare those yields and to longer term eg 10 year Treasury securities and 10 year Municipal securities and 10 year corporate bonds for current timeframe and Indicate the ratings ie AAA, AA, A.  1)Looking at maturities, Liquidity, and Risk factors between securities, what accounts for the differences? Consider what we said in class and consider the following questions: What does that tell you about risk and reward differences between short term and long-term securities in the current rates? What does it tell you about Treasuries versus Corporate Bond yield? What does it tell you about 2020 rates versus 1982? Find articles that help you make your choices and provide your research sources for your analysis. Worth 3 points   2.       Step 2(1 page): Using updated stock market table, how has your stock portfolio% been performing since your original purchases? And how does your portfolio% compare to the S& P 500% ie the market? Which stock performed the best (or worst) % in your portfolio since your purchase (1 point), and why (1 point)? Discuss any important financial or company events for this stock. You will need to do research and provide your sources (1 point). (3 points) 3.     Include a Works Cited section at end of your report with your sources of information that you used to keep up on the stock market and your stock portfolio. 1 point

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