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Real-Time Data Analysis Exercise *Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis In this exercise, we will graph
Real-Time Data Analysis Exercise *Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis In this exercise, we will graph the current yield curve (see the section, "Time to Maturity,\" and the graph of the yield curve in Chapter 4), plotting the interest rate on bonds with different maturities against their time to maturity. We will then compare that yield curve to the yield curve from one year earlier. Click the following links to view data on interest rates on bonds of different maturities from FRED. Then use that data to answer the following questions. 0 Interest rate on 1-year bonds Interest rate on 5-year bonds. Interest rate on 10-year bonds Interest rate on 30-year bonds Using the data from FRED, enter the values for the most recent month, and the same month one year earlier, for each of the four interest rates. (Enfer your responses exactly as they appear in FRED.) Same Interest Rate On Latest Month One Bonds Maturing in: Month Year Ago 1 year 5 years 10 years 30 years |:| Percent Yield Curves, Current (red) and One Year Ago (blue) 2.0 1.84 1.64 1.4 1.24 104 0.8+ 0.6 0.44 024 0.0 Q@ Q 0 T T T 0 15 20 25 30 Time to maturity (years)
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