Real-Time Data Analysis Exercise The following table contains selected interest rate data from FRED* for April of 2016. Series Value 30-year conventional mortgage rate 3.61% Moody's seasoned Aaa corporate bond yield 3.62% 3-month T-bill secondary market rate 0.23% 10-year Treasury constant maturity rate 1.81% *Real-time data provided by Federal Reserve Economic Data (FRED). Federal Reserve Bank of Saint Louis. All else constant, interest rates tend to be higher the greater the risk and the longer the term to maturity. Given that the expected inflation rate for April of 2016 was 2.8%, use the data above to calculate the expected real interest rate for each of the interest rates: (Enter your responses rounded to two decimal places.) Expected Real Series Interest Rate 30-year conventional mortgage rate .81 % Moody's seasoned Aaa corporate bond yield .82 % 3-month T-bill secondary market rate -2.57 % 10-year Treasury constant maturity rate -.99% Given that the actual inflation rate for April of 2016 was 1.1195, it can be concluded that, in terms of the cost of borrowing for that month, lenders were better off than expected and borrowers were worse off than expected Using the data from FRED, enter the values for April of 2016 (shown as 2016-04-01 in FRED) for the following series IDs: (Enter your responses exactly as they appear in FRED.) Series ID Value % MORTG AAA 96 TB3MS 96 GS10 Real-Time Data Analysis Exercise The following table contains selected interest rate data from FRED* for April of 2016. Series Value 30-year conventional mortgage rate 3.61% Moody's seasoned Aaa corporate bond yield 3.62% 3-month T-bill secondary market rate 0.23% 10-year Treasury constant maturity rate 1.81% *Real-time data provided by Federal Reserve Economic Data (FRED). Federal Reserve Bank of Saint Louis. All else constant, interest rates tend to be higher the greater the risk and the longer the term to maturity. Given that the expected inflation rate for April of 2016 was 2.8%, use the data above to calculate the expected real interest rate for each of the interest rates: (Enter your responses rounded to two decimal places.) Expected Real Series Interest Rate 30-year conventional mortgage rate .81 % Moody's seasoned Aaa corporate bond yield .82 % 3-month T-bill secondary market rate -2.57 % 10-year Treasury constant maturity rate -.99% Given that the actual inflation rate for April of 2016 was 1.1195, it can be concluded that, in terms of the cost of borrowing for that month, lenders were better off than expected and borrowers were worse off than expected Using the data from FRED, enter the values for April of 2016 (shown as 2016-04-01 in FRED) for the following series IDs: (Enter your responses exactly as they appear in FRED.) Series ID Value % MORTG AAA 96 TB3MS 96 GS10
