Assignment: Financial Management
1) Explain the determining factors of the interest rate and make sure to include hypothetical examples for better clarity.
2) Describe the meaning of the yield curve. Verify how the shape of the yield curve provides predictions on the economy in future years. Visit the US Governments' Treasury site, retrieve the data on the U.S. treasury rates and construct the yield curve. Indicate the date of retrieving the data.
3) Explain the terms associated with the bonds, namely, corporate bond, municipal bond, treasury bill, par value, coupon rate, coupon payment, time to maturity, prevalent interest rate, market value and yield to maturity (YTM).
4) Explain and provide examples of how variations in the prevalent interest rate affects market value of a bond.
5) Explain how you would value a stock. Provide an example of valuation of a stock based on retrieved real data. Include evidence of the retrieved data in your answer. Compare your valuation with the actual price of the stock at the designated time for your valuation.
Format your assignment according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.