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Internet Exercises
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1

Use historical yield-to-maturity data from the Bank of Canada Website at www.bankofcanada.ca to look at bonds of different types. Go towww.bankofcanada.ca/en/rates/bond-look.htm and follow the instructions. Download
2

60 months of yield-to-maturity data for long-term corporate bonds (series V122518),long-term provincial bonds (V122517), and long-term Canada bonds (series V122544),and put the data into a spreadsheet. Calculate the average spreads of the corporate andprovincial bonds over the Canada bonds. Graph the yields to maturity over time. What doyou see? Does it make sense?
3

It is difficult to get on-line yield-to-maturity and credit spread data for Canadiancorporate bonds with different debt ratings. However, U.S. data is available. Go towww.bondsonline.com/asp/corp/spreadbank.html. You will see a table showing currentextra yields to maturity (credit spreads) of corporate bonds of different risk over comparabletermU.S. government bonds. Spreads are provided for different industries. Select"Industrials" (at the bottom of the page). Using the data in the table, estimate the required rateof return on a 10-year debt issue by a U.S. company with A1 or A-rated debt. What if its debthad a B1 or B rating? The current yield to maturity on U.S. government bonds is at www.bondsonline.com/asp/news/composites.html.
4

From either The Globe and Mail or the National Post, find five different corporatebonds. Look up their ratings at either www.dbrs.com or www.standardpoor.com compare the bonds' yields to maturity to comparable-term Government of Canada bonds.Do the yields make sense relative to their bond ratings?





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