Question: Week 2 Essay Assignment We will take another Web Field Trip this week for your Assignment. Visit the following web site: https://www.bloomberg.com/markets/rates-bonds You will

Week 2 Essay Assignment We will take another Web Field Trip this week for your Assignment. Visit the following web site: https://www.bloomberg.com/markets/rates-bonds You will find an amazing amount of information about GLOBAL interest rates. It will open to the United States. You will see for example, an item called a "Yield Curve." The north and south axis (the Y axis) measure interest rates. The east and west (the X axis) measures the term (time) of the bond. You will notice that a bond with a term of 3 months pays much lower interest than a bond with a life of 30 YEARS. That make sense, although it is not always true, believe it or not. Do some research on the internet regarding an "inverted yield curve." Discuss this concept in your essay as well. Through this online field trip you will get exposure to interest rates around the world. Take the journey, do some independent research and describe in detail what you discover about interest rates, yield curves, the Federal Reserve, and more. You can start with and stay with the Bloomberg website, or you can "Google it" and explore on your own. AT A MINIMUM, your essay should address the following: Make sure to thoroughly paraphrase your findings from the Bloomberg site using your own words. Discuss the importance of the Yield Curve, as well as the causes and effects of an Inverted Yield Curve. Discuss market interest rates and how they affect the prices and yields of individual bonds. Investigate and explain the role of the Federal Reserve regarding interest rates. As always, use plenty of APA citations throughout along with a properly formatted reference list. Look for additional sources to support your findings. Due date is 11:59 PM Eastern Time (US) on Sunday. Case Assignment Grading Criteria: (60) Thoroughly answered all questions (20) References to course material (10) Spelling & grammar at college level (10) Quality / Content TOTAL: 100 points
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Step 1 Understanding the Yield Curve Definition The yield curve is a graph that plots interest rates of bonds with equal credit quality but differing ... View full answer
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