Q1. Go to http://research.stlouisfed.org/fred2 Under
“Categories,” select “Interest rates.” Compare the yield
offered on a T-bill with the yield offered by another money market security
with a similar maturity. What is the difference in yield? Why yields differ?

Q2. How has the risk premium on a specific risky money
market security (versus the T-bill) changed since one year ago? Is the change
due to a change in economic condition? Explain

Q3. Using the same website, retrieve interest rate data at
the beginning of the last 20 quarters for the three-month T-bill and another
money market security and place the data in two columns of an Excel
spreadsheet. Derive the change in interest rates for both money market security
is the dependent variable and the quarterly change in the T-bill rate is the independent
variable. Is there a positive and significant relationship between the interest
movements? Explain.

Essay:

Summarize current events regarding ethical financial
decision making and reporting in Canada including the different of perspectives
between non-Canadian and Canadian companies. 2 pages

Attachments:

FINC620—A4-….doc