Look at the current term structure of interest rates. This is available on many web sites yahoo, google, msn money, wsj.com, federalreserve. One good source is Using the chart wizard in excel, create a line graph of the relationship between time and yield (time on the x axis, yield on the y axis). Show the data you used plus the chart. What is the shape of the yield curve? What implications does this have for the economy? Write a very short paragraph answering these two questions.

Time to Maturity Yield (%)

1 month bill 3.969%

3 month bill 4.991%

6 month bill 4.929%

1 year bill 4.728%

2 year note 3.971%

3 year note 3.711%

5 year note 3.500%

7 year note 3.471%

10 year note 3.449%

30 year bond 3.685%