Financial Economics class.

Reference - Investments by Bodie, Kane and Marcus, 10th edition, but the use of the 9th or 11th edition.

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 [DG85,DGS7, etc.) and 5,7,10,20,30 year ination indexed security rate (DFIl5,DF117,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 ination. For the ones that are possible (i.e., the 5, 7 and 10 year horizons) , get the actual realized ination rates over the same period [from FRED, series DPCCRV1A225NBEA) and compare