1. Go to the CANSIM database and download monthly data from 1962:1 to 2021:1 for the three-month T-bill rate (series V122531). (Note these are daily rates - convert it into monthly rates) a) What is the average nominal interest rate, i? b) Calculate the change in i, i = i i . What is the average change? The standard deviation?

2. Go to the CANSIM database and download monthly data, from January 1976 to January 2021, on the three-month T-bill rate (series V122531) and the interest rate on long-term Canada bonds (Government of Canada benchmark bond yields, long term )(series V122544). (Note these are daily rates - convert it into monthly rates)

3. a) Construct a yield curve by creating a line graph for January 2021 and for the same month in 2020, across all the maturities. (on excel) b) How do the yield curves compare? What does the changing slope say about potential changes in economic conditions?