FINC 335 Project Description Stage 1
FORECAST OF ECONOMIC TRENDS AND TREASURY YIELD CURVES
Due at the end of week 4
This project is closely
... [Show More] aligned with the course outcomes and Finance program objectives.
Completion of this project can be used as part of a portfolio to show potential employers
that you are skilled at performing company valuations and financial statement analysis.
Consider adding these skills to your résumé.
Part 1: Forecast of Economic Trends and Interest Rates-(weight 40% of the project
grade).
Based on the course material presented in week 2.
You will need to check global and domestic economies trends. The decision what type of
securities to buy or to sell depends on global and domestic economies trends because the
economic situation of the country is a main factor of profitability.
A good understanding of the industry and macroeconomic situation is also useful for
explaining the past performance and creating a reliable forecast of future sales and
profits. You will be using your findings in all parts of this written assignment.
Select at least three news articles that discuss U.S. short-term and long-term economic
trends. Specifically, you will need:
the forecast of economic growth and
the short-term and long-term forecast of interest rates
At least one news article should be dated within the past month.
The articles should be from an on-line newspaper or magazine, or government website.
Materials posted on educational websites, like www.thebalance.com and
www.khanacademy.org are not considered news articles even if they are recent and
relevant.
Your specific assignment is as follows:
Compare and contrast the opinions of the authors of the articles regarding the
forecast of economic trends.
Compare and contrast the opinions of the authors of the articles regarding the
forecast of short-term and long-term interest rates.
Then, summarize key points of the articles in one or two pages.
For the comparison sections, present the key information, data, and statistics to
support your conclusions.
Write in your own words with brief quotations from the article(s). For all
quotations, statistics, and other information attributable to a specific source,
include in-text citations and references formatted in accordance with the current
edition of the APA style manual.
Part 2: Treasury Yield Curves (weight 40% of the project grade).
Based on the course material presented in weeks 2 and 4.
For this part of the project we will be using the U.S. Treasury Department website. It is
useful site for obtaining actual Treasury yield data.
1. Create the table with the interest rates data for Treasury yield curve for the
following five days. You can simply copy-paste the data for these dates. Present
the data in your project as a table.
a. 01/02/2001
b. 07/25/2007
c. 12/16/2015
d. 3/29/2019
e. 2022: the last available business day
2. Create the graphs in Excel and include them in your project.
3. Contrast the yield curves data for these five business days. What curve(s) can be
considered normal curve(s)? Inverse curve(s)? Flat curve(s)?
4. Compare long-term and short-term interest rates for each curve. What do yield
curves say about long-term versus short-term interest rates?
5. The yield curve’s shape and level change due to a variety of monetary, economic,
and political factors. What factors could account for this difference in shapes of the
curves and in level and spread of interest rates?
6. Using the forecast of economic trends and interest rates you found in part 1 of the
project, what shape of Treasury yield curve and the level of interest rates do you
expect to see in the short-term and in the long-term?
Part 3: Reflection (5% of the project grade).
Write a paragraph in your own words reflecting on what they learned from the
assignment and how you think you could apply what they learned in the workplace or in
their everyday life.
Presentation of Paper and Writing (15% of the project grade):
Organization, format, and presentation of paper including the title page,
introduction, body, and summary. Begin each section with a subheading; use the
subheadings described in the assignment (4% of the project grade).
Use of tables, figures, and other graphics to summarize and support analysis
presented in the paper. All tables and charts should have the numbering system:
“Table 1”, a substantive title, and a reference to the source of the information. (3%
of the project grade).
Logical and smooth flowing transitions and relationships among sections of the
written report (3% of the project grade).
Research sources and significance of research information and data, and use of
APA citation methodology (5% of the project grade). [Show Less]