Question
LOOK UP TODAYS CURVES AUgust 29, 2017 8.1 A. Look up the US Treasury yield curve online. i. What is the promised yield for a
LOOK UP TODAY"S CURVES AUgust 29, 2017
8.1 A. Look up the US Treasury yield curve online.
i. What is the promised yield for a 1-month T-bill?
ii. For a 6-month T-bill?
iii. A 1-year T-bill?
iv. A 5-year T-bond?
v. A 10-year T-bond?
iv. A 20-year T-bond?
iiv. A 30-year T-bond?
iiiv. On what date did you look up these yields?
ix. On what Web site did you find these yields?
B. Is this yield curve flat, rising, or inverted?
C. Many introductory finance textbooks say, at the beginning of bond valuation problems, "Assume the yield curve is flat." Another way of putting this is "Assume the term structure of interest rates is flat." How would this assumption make the questions easier for students of introductory finance to solve?
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