Www federalreserve gov datadownload choose aspx rel h15

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Fayetteville State University Broadwell College of Business and Economics

Department of Accounting, Finance, Healthcare Administration, and Information Systems

Course: Money, Banking, and Monetary Policy (FIN 323-D1) Spring 2019

Professor: Dr. Thomas Williams

Subject: Class Project

Date: January 14, 2019

First, this class project description is an integral part of the course syllabus. As indicated in

the syllabus, you should now be familiar with the website from which you will copy the data

needed to prepare the report for this project. You must work together in the groups formed

at the beginning of the semester for this project. Working as a member of a group for the

project is a requirement for taking this course.

Visit the following Federal Reserve website to access interest rate (yield) information for

U.S. government securities and corporate bonds.

https://www.federalreserve.gov/datadownload/Choose.aspx?rel=H15

This project consists of two separate parts:

Part 1

Copy the yield on U.S. government securities (for example - Market yield on U.S.

Treasury securities at 3-month constant maturity, quoted on investment basis) from the

monthly data files for 12 years, 2004 - 2015.

Students belonging to each group must use the data for the month designated in the

table immediately below.

Group Month

1 March

2 May

3 August

Copy the 3-month, 6-month, 1-year, 3-year, 5-year, 10-year, 20-year, and 30-year

yields. All groups should copy eight different yields for each of the 12 years. This should

result in sufficient data for a total of 12 yield curves (one per year) for each group.

Use Excel to plot the yield curves for each of the 12 years. Prepare a report that

includes tables with the raw data you copied and graphs that depict the term structure

of interest rates. The narrative portion of the report should describe the shape of the

yield curves, compare the curves, and include plausible explanation for the shape of the

curves.

Part 2

Copy the monthly yields for corporate bonds with Moody’s seasoned ratings of Aaa and

Baa, and Treasury constant maturities 10-year bonds from January 2004 through

https://www.federalreserve.gov/datadownload/Choose.aspx?rel=H15
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December 2015. This should yield three series of data; one for 10-year Treasury bonds,

one for Aaa corporate bonds, and one for Baa corporate bonds.

Plot all three series on the same graph using the 2004 - 2015 data. Describe and

interpret the graphs, and then explain any differences or similarities.

The report must be typed, 12-point print, double-spaced on numbered pages, and

presented as a single MS Word document. The narrative portion of the report should be

between 4 and 6 pages. Add a cover page, which lists the course title and number, group

number, names of students that prepare the report, and the due date.

This report is due at the beginning of class on Monday, March 25, 2019. Students who turn

in a late report surrender five points per day or part thereof for each day the report is late.

All members of a group that fails to turn in their report on time will be treated equally.

Each student should retain a copy of the final report as the learning outcomes assessment

assignment, which students must do individually may, in part, be based on the class

project.

Group members are expected to participate equally on this project. However, to mitigate a

free-rider problem, the grade awarded to each student for this project shall consist to two

parts. Fifty percent of the grade is based on the instructor’s evaluation of the project. The

other fifty percent is based on how each group member allocates a pool of funds to

individual members.

Here is an illustration of how the system operates for a group consisting of four students.

Each group member receives $200,000 ($50,000 for each member in the group) to be

divided among the four members of the group based on that member’s assessment of how

much each colleague contributed to the group effort. Each group member should allocate

the $200,000, as they deem appropriate. Please note that each student would receive

$150,000 if the group consisted of three members. Now let’s get back to the group with

four members. If a group member (Student 2) believed that the contribution was equal

among the group members then that member pays $50,000 to each member. This is how

the system works in practice, when the other members of the group believe that Student 2

has failed to complete his/her responsibilities in a timely fashion and is habitually absent

from group meetings. These other group members will therefore, not allocate their allotted

$200,000 equally. Assume that the instructor assesses a score of 90 points for the project

and group members make the cash payments as indicated in the columns below.

Student 1

pays

Student 2

pays

Student 3

pays

Student 4

pays

Total

received

Student 1 receives $55,000 $50,000 $55,000 $54,000 $214,000

Student 2 receives $30,000 $50,000 $27,000 $28,000 $135,000

Student 3 receives $60,000 $50,000 $60,000 $58,000 $228,000

Student 4 receives $55,000 $50,000 $58,000 $60,000 $223,000

Total paid $200,000 $200,000 $200,000 $200,000 $800,000