1) List the yields for Treasury bonds of maturities from 3 months to 30 years on the day 5X after March 1, 2019. You can compute this date with the Excel functions YEAR(DATE(2019/3/1) + 3*X), MONTH(...), and DAT(...). Were there any inversions in this yield curve?

2) Let s = (X - 50)/100. You should get a value of s between -0.5 and 0.5. Suppose that the current expectation of the short rate between now and nine years from now is 1%, (1 + 0.1s)%, (1 + 0.2s)%, (1 + 0.3s)%, (1 + 0.4s)%, (1 + 0.5s)%, (1 + s)%, (1 + 1.5s)%, (1 + 2.5s)%, and (1 + 3.5s)% respectively.

a) Assuming expectations theory is correct, compute and plot the yield curve for maturities from 1 to 10 years. Is your yield curve upward-sloping, flat, or inverted? Or perhaps its shape is different for long and short maturities.

b) Suppose there is a liquidity premium of 0.3% for a 2-year bond, 0.6% for a 3-year bond, 0.9% for a 4-year bond, 1.1% for a 5-year bond, 1.3% for a 6-year bond, 1.5% for a 7-year bond, 1.7% for an 8-year bond, 1.9% for a 9-year bond, and 2% for a 10-year bond. According to liquidity premium theory, compute and plot the yield curve for maturities from 1 to 10 years. Is your yield curve upward-sloping, flat, or inverted? Or perhaps its shape is different for long and short maturities.