Question
4. Using data from the St. Louis Federal Reserve (https://fred.stlouisfed.org/), analyze bond prices and interest rates, a. Find the most recent values and the values
4. Using data from the St. Louis Federal Reserve (https://fred.stlouisfed.org/), analyze bond prices and interest rates,
a. Find the most recent values and the values from the same month 1 year and 2 years earlier for the 1-Year Treasury Bill: Secondary Market Rate (TB1YR).
b. Suppose the 1-Year Treasury bill has a face value of $2,000. Using the interest rates found above, calculate the price of a 1-Year Bill for each of the 3 periods.
c. From the previous computations, what can you determine about the relationship between interest rates and bond prices?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started