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6. As of October 16th of 2019 , the yield of six month, one, two, three and five year U.S. treasury bonds are the following:

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6. As of October 16th of 2019 , the yield of six month, one, two, three and five year U.S. treasury bonds are the following: 1.64%,1.59%,1.58%,1.57%,1.57% 1) Based on the information, plot yield curve. 2) Assuming that the pure expectation theory is the right theory of term structure, calculate the one-year interest rates over the next two years, that is it+1 and it+2. 3) If you plan to buy a 2-year bond next year, how much should you pay for the bond? (Hint: Relevant YTM is i2t+1 ) 6. As of October 16th of 2019 , the yield of six month, one, two, three and five year U.S. treasury bonds are the following: 1.64%,1.59%,1.58%,1.57%,1.57% 1) Based on the information, plot yield curve. 2) Assuming that the pure expectation theory is the right theory of term structure, calculate the one-year interest rates over the next two years, that is it+1 and it+2. 3) If you plan to buy a 2-year bond next year, how much should you pay for the bond? (Hint: Relevant YTM is i2t+1 )

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