Please answer each of the following questions in detail and provide at least 3 in-text citations in support of your argument. Make sure to include examples. Make sure to provide examples for each of the questions below with computation.
1. Please 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. Please 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. Please 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.
use book as reference