Get the monthly data from 1978 to 2006 on longterm Canada bonds (CANSIM series V122544), the interest rate on long-term provincial bonds (series V122517), and the interest rate on long-term corporate bonds (series V122518) from the Textbook Resources area of the MyEconLab.

a. Present a time series plot of these interest rates and comment on their long-term movements.

b. Which series exhibit the strongest correlations? The weakest? Do the correlation patterns you identified here manifest in the graphical representation of the series?

c. Compare the contemporaneous correlations over the whole period with those in the 1960s, 1970s, 1980s, 1990s, and 2000s.

d. Calculate the corporate-Canada spread and the corporate-provincials spread and plot these series.

e. Continuing from (d), comment on the time paths of the risk premiums.