Instructions This assignment will allow you to assess the impact of news on stocks and bonds

Instructions

This assignment will allow you to assess the impact of news on stocks and bonds. News can affect stock and bond prices in significant ways. This is because news disseminates into the market at different speeds and with different levels of importance. As investors, you need to think about how information flows through market participants and into securities. Surprise news can jolt the market up or down, whereas gradual dissemination can result in a slow buildup or deterioration in prices/yields. Additionally, market participants sometimes build expectations beforehand, and prices react differently than people expected because the news did not meet or exceed expectations. All of these dynamics can supply important information to apply to an investor's portfolio decisions.

Use Yahoo! Finance to research the historical pricing of the CBOE 10 year treasury yield (symbol: ^TNX). 

Then Calculate the percentage change for: · The 2 weeks prior to the news · The day of the news · The 2 weeks after the news Explain how the actual impact of the news on the bond yield aligned with your initial expectation after reading the news article. Be sure to show your work to get full credit for these calculations.

Question 1 Calculate the percentage change of the CBOE 10 year treasury yield for the two weeks prior to the news, the day of the news, and the two weeks after the news. Show your work to support your response.

Question 2. Explain how the actual impact of the news on the bond yield aligned with your initial expectation after reading the news article.

N.B Please use a recent news and provide link.