Go to the St. Louis Federal Reserve website at www.stlouisfed.org and search for Treasury. You will find
Question:
Go to the St. Louis Federal Reserve website at www.stlouisfed.org and search for “Treasury.” You will find a list of links for different historical interest rates. Follow the “10-Year Treasury Constant Maturity Rate” link and you will find the monthly 10-year Treasury note interest rates. Calculate the average annual 10-year Treasury interest rate for 2014 and 2015 using the rates for each month. Compare this number to the long-term government bond returns and the U.S. Treasury bill returns found in Table 10.2. How does the 10-year Treasury interest rate compare to these numbers? Do you expect this relationship to always hold? Why or why not?
TABLE 10.2 Total Annual Returns, 1926–2015
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,