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Yield Bond and Curve

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Yield Curve and Bond Valuation
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Yield Curve and Bond Valuation
Question 1 and 2 Based on the information retrieved from the Board of Governors of the Federal Reserve System on a 1-month business day, the following information concerning historical dairy interest rates on the U.S treasury was obtained. The rates were picked from the current dates (1st January2012) back to five years a go (1st January 2007). Whereby, if that date was not a business date the preceding date was selected as shown in the table below.
|Business Date chosen Five Years Ago |1st January 2007 |
|1-month Nominal T-bill Rate on that date |5.02% |
|3--month Nominal T-bill Rate on that date |4.79% |
|6-month Nominal T-bill Rate on that date |5.11% |
|1-year Nominal T-note Rate on that Date |5% |
|5-year Nominal T-note Rate on that Date |4.68% |
|10-year Nominal T-note Rate on that Date |4.68% |
|20-year Nominal T-note Rate on that Date |2.68% |
|30-year Nominal T-note Rate on that Date |0.81% |

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