sandovals6 - Scott Sandoval AEB3144 Practice Problem #6 1....

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Scott Sandoval AEB3144 Practice Problem #6 1. For Bonds a. Tracking Bond Benchmarks i. Highest “latest” yield: Triple-C-rated (CCC). It is the most risky of the Bonds so it makes sense for it to have the highest yield. It also has the highest yield over the past 52 weeks. ii. Lowest “latest” yield: Intermediate Hourly Treasury Index. Treasury bonds should have the lowest risk and the smallest returns. It also has the lowest high yield over the past 52 weeks. iii. Highest “Latest” yield (Government Bond): The yield on the Emerging Markets is the highest. This makes sense for the same reason as the non- government bonds. The emerging markets should be more risky than the established countries, which would lead to higher returns. b. Global Government Bonds: Mapping Yields i. Coupon rate of a U.S. Treasury with a 10 year Maturity: 3.125%. It is higher than the coupon rate for a 2 year bond. The yields are increase as the maturity time increases ii. The yield rate of the U.S. Treasury with a 10 year Maturity has decreased
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sandovals6 - Scott Sandoval AEB3144 Practice Problem #6 1....

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