Exercise 5.

(Use Excel or similar) On FRED, get the following data from 26 July 2010 or as close as

possible to that date: 5,7,10,20,30 year constant maturity treasury rate (DGS5,DGS7, etc.) and 5,7,10,20,30

year inflation indexed security rate (DFII5,DFII7,etc.). Using that data, graph the nominal and real yield

curves. Compute all the forward rates on each yield curve. Take the difference between the forward rates

on the nominal yield curve and the forward rates on the real yield curve. This difference is a measure of

expected future inflation. For the one that's possible (i.e., the 5 and 7 year horizons) , get the actual realized

inflation rates over the same period (from FRED, series DPCCRV1A225NBEA) and compare.