Question: For your final assignment I want you to create a bond yield spread trade. The trade can be a yield curve spread or a credit
For your final assignment I want you to create a bond yield spread trade. The trade can be a yield curve spread or a credit spread. Your deliverables will be: -Excel spreadsheet detailing the two bonds you are using that calculates the following: -Bond price based on a yield input -Bond position profit and loss based on initial trade price (yield) and current market price (yield) Proper hedge ratios for the transaction -Sensitivity analysis showing the profit and loss if the yield spread moves 20 basis points in your favor and against your position. -1-page Word document describing why you are choosing to enter this transaction and at what level you would either take profits or cut your losses
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