1. Select and collect the following Bloomberg screens:
a. One 26 week Treasury Bill and one 52 week Treasury Bill
b. One Floating Rate Note or Bond (floater)
c. One USA Government Bond with remaining time to maturity of 12 years
d. One Municipal Bond
e. One FANNIE MAE Bond
f. USA Government Yield Curve and Spot Rates
g. One Corporate Bond outof the list of customizedMultinational Companies [see item (5) below].
2 Next, collect Four data points of each of the above security's end-of-year security prices at the closing dates of December 31st, 2012, 2013, 2014 and 2015.
3 Calculate the Expected and the Actual Capital Gains Yield (CGY), the Current (Coupon) Yield (CY), and the Total Yield (TY) for each security during 2013 and 2014. Also find the present Yield-to-Maturity for each security.
4 Examine and print the screens of the above chosen securities and collect all of the data that you need to use for your project including measures of Risk, Duration, Convexity and Yield Spreads.
5 Use the Bloomberg Terminal to select your Corporate Bond outof the list of customizedMultinational Companies as Follows:
a. Select one Corporate Bond (remaining maturity of 10 years or more) of a Multinational Companyfrom EQUITY SCREENING - EQSScreen for companies that meet a customized set of Criteria(Bloomberg).
b. Then go to the Comparable Bond Analysis Bloomberg screenand obtain for your Bond a Comparable Bond Analysis - Determine the relative richness/cheapness of your customizable corporate bond.
c. Next go to Fixed Income Credit Monitor screen - See where your spreads have tightened or widened
d. Then use the above collected data and screens (dealing with Yield Spreads andrichness/cheapness), to evaluate and explain the differences among your securities.
6 Present all of the above collected data and results in summarized table(s).
7 You are required to analyze, evaluate, and briefly explain the different securities and then follow also with a performance evaluation of your chosen securities compared to each other or to an appropriateindex or benchmark. First show the Pricing of T. Bills and the conversions among the Discount Rate, BEY, and Effective Annual Rate as they apply to your securities. Then you may wish to include in your presentation some of the following items and demonstrations: (1) Yield Curve Ride with the Treasury Bills; (2) Use Duration and Convexity to predict changes of prices for a couple of your bonds; (3) Use Durations to Immunize a portfolio composed of 4 of your securities; (4) Show evaluation of the Effective Discount Margin of your Floater and its relation to the Yield; (5) Use Spot Rates to price Treasury Strip versus Treasury Bond; and (6) Analyze the variety of Yield Spreads among your chosen securities.