“Ch. 1 INTERNET/EXCEL EXERCISES

1. Review the information for the common stock of IBM, using the website http://finance.yahoo.com. Insert the ticker symbol IBM in the box and click on Get Quotes. The main goal at this point
is to become familiar with the information that you can obtain at this website.
Review the data that are shown for IBM stock. Compare the price of IBM based on
its last trade with the price range for the year. Is the price near its high or
low price? What is the total value of IBM stock (market capitalization)? What
is the average daily trading volume (Avg. Vol.) of IBM stock? Click on 5y
just below the stock price chart to see IBMs stock price movements over the
last five years. Describe the trend in IBMs stock over this period. At what
points was the stock price the highest and lowest?

2. Repeat the questions in exercise 1 for
the Childrens Place Retail Stores (symbol PLCE). Explain how the market
capitalization and trading volume for PLCE differ from that for IBM.

Ch. 2 INTERNET/EXCEL EXERCISES

1. Go to
http://research.stlouisfed.org/fred2. Under Categories, select Interest
rates and then select the three-month Treasury-bill series (secondary market).

Describe how this rate has changed in
recent months. Using the information in this chapter, explain why the interest
rate changed as it did.

2. Using the same website, retrieve data at
the beginning of the last 20 quarters for interest rates (based on the
three-month Treasury-bill rate) and the producer price index for all
commodities and place the data in two columns of an Excel spreadsheet.

Derive the change in interest rates on a
quarterly basis. Then derive the percentage change in the producer price index
on a quarterly basis, which serves as a measure of inflation. Apply regression
analysis in which the change in interest rates is the dependent variable and
inflation is the independent variable (see Appendix B for information about
applying regression analysis). Explain the relationship that you find. Does it
appear that inflation and interest rate movements are positively related?

Ch. 3 INTERNET/EXCEL EXERCISES

1. Assess the shape of the yield curve by
using the website
.bloomberg.com/””>www.bloomberg.com.
Click on Market data and then on Rates & bonds, is the Treasury yield
curve upward or downward sloping? What is the yield of a 90-day Treasury bill?
What is the yield of a 30-year Treasury bond?

2. Based on the various theories attempting
to explain the yield curves shape, what could explain the difference between
the yields of the 90-day Treasury bill and the 30-year Treasury bond? Which
theory, in your opinion, is the most reasonable? Why?

Ch. 6 INTERNET/EXCEL EXERCISES

1. Go to
http://research.stlouisfed.org/fred2. Under Categories, select Interest
rates. Compare the yield offered on a T-bill with the yield offered by another
money market security with a similar maturity. What is the difference in
yields? Why do you think the yields differ?

2. How has the risk premium on a specific
risky money market security (versus the T-bill) changed since one year ago? Is
the change due to a change in economic conditions? Explain.

3. Using the same website, retrieve
interest rate data at the beginning of the last 20 quarters for the three-month
T-bill and another money market security and place the data in two columns of
an Excel spreadsheet. Derive the change in interest rates for both money market
securities on a quarterly basis. Apply regression analysis in which the
quarterly change in the interest rate of the risky money market security is the
dependent variable and the quarterly change in the T-bill rate is the
independent variable (see Appendix B for more information about using
regression analysis). Is there a positive and significant relationship between
the interest rate movements? Explain.
Ch. 1 INTERNET/EXCEL EXERCISES1. Review the information for the common
stock of IBM, using the website http://finance.yahoo.com. Insert the ticker
symbol IBM in the box and click on Get Quotes. The main goal at this point
is to become familiar with the information that you can obtain at this website.
Review the data that are shown for IBM stock. Compare the price of IBM based on
its last trade with the price range for the year. Is the price near its high or
low price? What is the total value of IBM stock (market capitalization)? What
is the average daily trading volume (Avg. Vol.) of IBM stock? Click on 5y
just below the stock price chart to see IBMs stock price movements over the
last five years. Describe the trend in IBMs stock over this period. At what
points was the stock price the highest and lowest?2. Repeat the questions in exercise 1 for
the Childrens Place Retail Stores (symbol PLCE). Explain how the market
capitalization and trading volume for PLCE differ from that for IBM.Ch. 2 INTERNET/EXCEL EXERCISES1. Go to
http://research.stlouisfed.org/fred2. Under Categories, select Interest
rates and then select the three-month Treasury-bill series (secondary market).
Describe how this rate has changed in
recent months. Using the information in this chapter, explain why the interest
rate changed as it did.2. Using the same website, retrieve data at
the beginning of the last 20 quarters for interest rates (based on the
three-month Treasury-bill rate) and the producer price index for all
commodities and place the data in two columns of an Excel spreadsheet. Derive the change in interest rates on a
quarterly basis. Then derive the percentage change in the producer price index
on a quarterly basis, which serves as a measure of inflation. Apply regression
analysis in which the change in interest rates is the dependent variable and
inflation is the independent variable (see Appendix B for information about
applying regression analysis). Explain the relationship that you find. Does it
appear that inflation and interest rate movements are positively related?Ch. 3 INTERNET/EXCEL EXERCISES1. Assess the shape of the yield curve by
using the website.bloomberg.com/””>www.bloomberg.com.
Click on Market data and then on Rates & bonds, is the Treasury yield
curve upward or downward sloping? What is the yield of a 90-day Treasury bill?
What is the yield of a 30-year Treasury bond? 2. Based on the various theories attempting
to explain the yield curves shape, what could explain the difference between
the yields of the 90-day Treasury bill and the 30-year Treasury bond? Which
theory, in your opinion, is the most reasonable? Why?Ch. 6 INTERNET/EXCEL EXERCISES1. Go to
http://research.stlouisfed.org/fred2. Under Categories, select Interest
rates. Compare the yield offered on a T-bill with the yield offered by another
money market security with a similar maturity. What is the difference in
yields? Why do you think the yields differ?2. How has the risk premium on a specific
risky money market security (versus the T-bill) changed since one year ago? Is
the change due to a change in economic conditions? Explain.3. Using the same website, retrieve
interest rate data at the beginning of the last 20 quarters for the three-month
T-bill and another money market security and place the data in two columns of
an Excel spreadsheet. Derive the change in interest rates for both money market
securities on a quarterly basis. Apply regression analysis in which the
quarterly change in the interest rate of the risky money market security is the
dependent variable and the quarterly change in the T-bill rate is the
independent variable (see Appendix B for more information about using
regression analysis). Is there a positive and significant relationship between
the interest rate movements? Explain.”