Go to the web site of the Federal Reserve Bank of St. Louis (FRED) (fred.stlouisfed.org) and download

Question:

Go to the web site of the Federal Reserve Bank of St. Louis (FRED) (fred.stlouisfed.org) and download the most recent values and values from the same month one year and two years earlier for the 1-Year Treasury Bill: Secondary Market Rate (TB1YR).
a. Suppose the 1-Year Treasury Bill has a face value of $1,000. Using the interest rates found above, calculate the price of a 1-Year Treasury Bill for each of the three months.
b. From the calculations you made in part (a), what can you conclude about the relationship between bond yields and bond prices?

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...