Given the following data on debt U.S. Treasury debt instruments: (Show all work in a way I can do it by wiriting)
PS: I know you are only allow to do less than 5 exercises, so can you please just do the exercises E,F,G,H? Another person already helped me understand a little how to calculate the first four exercises. Thank you!
1-year note yield = 4.42%
2-year note yield = 4.69%
3-year note yield = 5.02%
4-year note yield = 5.02%
5-year note yield = 5.35%
6-year note yield = 5.50%
7-year note yield = 5.64%
8-year note yield = 5.70%
9-year note yield = 5.86%
10-year note yield = 5.95%
11-year note yield = 5.90%
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.