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Given the following data on debt U.S. Treasury debt instruments: - 1-year note yield =4.42% 7 -year note yield =5.64% - 2-year note yield =4.69%
Given the following data on debt U.S. Treasury debt instruments: - 1-year note yield =4.42% 7 -year note yield =5.64% - 2-year note yield =4.69% 8 -year note yield =5.70% - 3-year note yield =5.02%9-year note yield =5.86% - 4-year note yield =5.02%10-year note yield =5.95% - 5-year note yield =5.35%11-year note yield =5.90% - 6-year note yield =5.50%12-year note yield =5.99% And constant premiums of 0,.17%,.41%,.63%,.82%,.98%,1.12%,1.22%,1.30%,1.37%,1.42%,1.45%,1.47% a. Calculate the expected market yields for a (1,5,2) path. b. Calculate the expectations yields for a (3,4,1) path. c. Calculate the real world yield for a (3,5) path. d. Calculate the expected preferred habitat yield for a 5-year note purchased at the beginning of year 2. e. Calculate the expectations yield on a 4-year note purchased at the beginning of year 5 . f. Determine the expectations yield on a 10 -year note purchased today. g. Determine the yield on a 12-year Treasury note purchased today. h. Describe the yield curve and provide a general interpretation of what implies about the economy
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