Yield Curve What is the shape of the Treasury yield curve today? Go to www.bloomberg.com and find out. Is the yield curve upward sloping or downward sloping? According to the expectations theory, are interest rates in the future expected to be higher or lower than they are today?
STRIPS Go to www.publicdebt.treas.gov and follow the "Treasury Securities at a Glance" link to find information on Treasury STRIPS. Answer the following questions: Which Treasury securities are eligible to be stripped? What are minimum par amounts for stripping? How do I buy STRIPS? Why do investors hold STRIPS?
STRIPS Go to www.bondsonline.com and find the quotes for STRIPS that are offered for sale on the site. How many STRIPS are offered for sale? What is the lowest and highest yield to maturity? Are there STRIPS with the same maturity that have different prices? How could this happen?
