6. [30 points] I have placed an Excel spreadsheet on Blackboard (PROJECT BOND FIN 445 2015 Fall.xlsx). The spread data represents three sectors of the bond market: Investment Grade U.S. corporate bonds, High Yield U.S. corporate bonds, and U.S. dollar-denominated Emerging Market Corporate bonds. As an analyst, your job is to determine whether each of these sectors are fairly valued, overvalued, or undervalued. You will do the following:

6. [30 points] I have placed an Excel spreadsheet on Blackboard (PROJECT BOND FIN 445 2015 Fall.xlsx). The spread data represents three sectors of the bond market: Investment Grade U.S. corporate bonds, High Yield U.S. corporate bonds, and U.S. dollar-denominated Emerging Market Corporate bonds. As an analyst, your job is to determine whether each of these sectors are fairly valued, overvalued, or undervalued. You will do the following:

a. Create a separate chart for each of the three data series.

b. Calculate the average spread for each data series, and plot on the chart.

c. Calculate +/- 1 standard deviation for each data series, and plot on the chart.

d. Copy each chart into your project paper.

e. Given where the current spread is (the last data point), give me an explanation for each data series as to whether each sector today is a buy, sell, or wait (assume you don’t own any bonds, so “hold” is not an option). Each explanation should be no more than half of one page.

f. What other data or information that is not currently available to you might alter your buy/sell/wait decision? Maximum one-half page.

g. In one paragraph, rank the three bond sectors according to their relative value, i.e., if you had to make a choice, which would you buy 1st, 2nd, and 3rd? Explain your answer.

find the cost of your paper