Question: 4. Using data from the St. Louis Federal Reserve (https://fred.stlouisfed.org/), analyze bond prices and interest rates, a. Find the most recent values and the values
4. Using data from the St. Louis Federal Reserve (https://fred.stlouisfed.org/), analyze bond prices and interest rates,
a. Find the most recent values and the values from the same month 1 year and 2 years earlier for the 1-Year Treasury Bill: Secondary Market Rate (TB1YR).
b. Suppose the 1-Year Treasury bill has a face value of $2,000. Using the interest rates found above, calculate the price of a 1-Year Bill for each of the 3 periods.
c. From the previous computations, what can you determine about the relationship between interest rates and bond prices?
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