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Project_I_FIN_353_Fall[1] - Project I FIN 353 Evaluation...

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Project I FIN 353 Evaluation The project is due on November 2nd, 2011 . Please see syllabus for late policy. Project I is worth 125 points. There are two questions. The first question is worth 110 points. The second is worth 15 points. A total of 125 points is possible. Question 1, Parts a-g is worth 10 points each . Part H is worth 40 points. Question 2 is worth 15 points. Please work in your groups that were assigned. HAND IN ONE PROJECT PER GROUP. You may email me or come to my office hours if the instructions are not clear and you need help. Questions 1. You have been hired by Risky Ventures, Inc., as a consultant to help them write an economic forecast. More specifically you will calculate the following: a. Spread between Baa and Aaa b. Current yield curve c. Growth in commercial loans d. Debt service to disposable income e. Bid to cover ratio f. Growth in money supply g. The size of the Fed The directions are below: a. Calculate Baa-Aaa spread. Go to and select "Selected Interest Rates - H.15 daily." Click on “Historical Data.” Find Moody’s seasoned and download monthly data for Aaa and Baa. Download the interest rates into Excel. Calculate the spread. Create a chart of the spread 1970 until the most recent date. b. Calculate current yield curve: Go to the same federal reserve website to calculate the yield curve: Select Interest Rate Data H.15 Daily again.
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