Construct a term structure (for each of the frequencies listed below) based on Vasiceks Equilibrium Model of zero rates for 0.5, 1, 2, 3, 5, 7, 10, 20, and 30 years. Use (a) daily, and (b) weekly frequencies for the 3-month T-bill rate (the short-term rate) over the following two time periods using the rates are available on the Federal Reserve Economic Database (FRED): (i) from the beginning of the data period (January 1954) until December 2020, and (ii) from January 1, 2021, until the present.

1. Graph the term structure derived from the Vasicek Model and compare it with the par yield term structure based on market rates.

2. Compare and contrast the term structures derived from the two different time periods.

3. How does the market price of risk of the short rate differ across the two time periods? Any potential explanations?