Answer all four questions $(5$ points each; $30$ points total$)$

$1.$ create in excel $($and attach to an email$)$ the yield curve for a date you are assigned in June $2020.$ Provide a summary statement interpreting this yield curve. $($SEE Question $5$ to complete this excel program assignment before closing and saving.$)$

$2.$ The FED is concerned with interest rate levels and the possibility of inflation or deflation. Given your assigned information for June $2020$ data below, calculate the two annual forward rates using the information provided below.

$3.$ Given the Spot rate and your two calculated forward rates, calculate the expected inflation premiums over the next three years. Assume the RR $($real rate$)=2\%.$

$4.$ Given your numbers, should the FED have been concerned with inflation $($deflation$)$ in the near term $($first year$),$ interim period $($second year$),$ or longer term $($third year$)$ period that you calculated $($in #$3)$ and now observe for June $2020?$

$5.$ Using Excel, draw the two yield curves $($if possible on the same graph$)$ reflective of $2010$ and $2012$ label each. Add the yield curve for the date you were assigned for June $2020$ and for Sept. $2024.$ What do you observe, how has the yield curve changed since $2010$ to $2012$ to $2020$ to $2024?$ What might the change imply?

$6.$ In light of the data and reviewing the daily interest rate levels for $2024,$ explain effective is the FED$$s endeavor to bring down inflation for a $$soft landing.$$

September $2010$

Date $1$ mo $3$ mo $6$ mo $1$ yr $2$ yr $3$ yr $5$ yr $7$ yr $10$ yr $20$ yr $30$ yr

$09/29/100\mathrm{.}120\mathrm{.}160\mathrm{.}200\mathrm{.}270\mathrm{.}440\mathrm{.}671\mathrm{.}281\mathrm{.}912\mathrm{.}523\mathrm{.}383\mathrm{.}69$

January $2012$

Date $1$ mo $3$ mo $6$ mo $1$ yr $2$ yr $3$ yr $5$ yr $7$ yr $10$ yr $20$ yr $30$ yr

$01/13/120\mathrm{.}020\mathrm{.}030\mathrm{.}060\mathrm{.}100\mathrm{.}240\mathrm{.}340\mathrm{.}801\mathrm{.}321\mathrm{.}892\mathrm{.}592\mathrm{.}91$

FIN $610$ First Exam $$ each student will use the assigned daily data $($see below$)$ to answer the indicated questions above $=>$ for the yield curve, the expected forward rates, and the estimate of expected inflation premium from the assigned list below.

Date $1$ Mo $2$ Mo $3$ Mo $6$ Mo $1$ Yr $2$ Yr $3$ Yr $5$ Yr $7$ Yr $10$ Yr $20$ Yr $30$ Yr

$06/02/200\mathrm{.}120\mathrm{.}130\mathrm{.}150\mathrm{.}180\mathrm{.}170\mathrm{.}170\mathrm{.}200\mathrm{.}320\mathrm{.}520\mathrm{.}681\mathrm{.}241\mathrm{.}48$

$06/03/200\mathrm{.}120\mathrm{.}140\mathrm{.}160\mathrm{.}190\mathrm{.}170\mathrm{.}190\mathrm{.}260\mathrm{.}380\mathrm{.}590\mathrm{.}771\mathrm{.}321\mathrm{.}56$

$06/04/200\mathrm{.}130\mathrm{.}150\mathrm{.}150\mathrm{.}180\mathrm{.}170\mathrm{.}190\mathrm{.}260\mathrm{.}400\mathrm{.}630\mathrm{.}821\mathrm{.}381\mathrm{.}61$

$06/05/200\mathrm{.}130\mathrm{.}140\mathrm{.}150\mathrm{.}180\mathrm{.}180\mathrm{.}220\mathrm{.}290\mathrm{.}470\mathrm{.}710\mathrm{.}911\mathrm{.}461\mathrm{.}68$

$06/08/200\mathrm{.}150\mathrm{.}150\mathrm{.}170\mathrm{.}190\mathrm{.}190\mathrm{.}220\mathrm{.}290\mathrm{.}450\mathrm{.}690\mathrm{.}881\mathrm{.}431\mathrm{.}65$

$06/09/200\mathrm{.}140\mathrm{.}170\mathrm{.}190\mathrm{.}190\mathrm{.}190\mathrm{.}200\mathrm{.}250\mathrm{.}400\mathrm{.}650\mathrm{.}841\mathrm{.}371\mathrm{.}59$

$06/10/200\mathrm{.}130\mathrm{.}160\mathrm{.}170\mathrm{.}190\mathrm{.}180\mathrm{.}170\mathrm{.}220\mathrm{.}330\mathrm{.}560\mathrm{.}751\mathrm{.}311\mathrm{.}53$

$06/11/200\mathrm{.}140\mathrm{.}160\mathrm{.}170\mathrm{.}180\mathrm{.}190\mathrm{.}190\mathrm{.}220\mathrm{.}320\mathrm{.}510\mathrm{.}661\mathrm{.}191\mathrm{.}41$

$06/12/200\mathrm{.}140\mathrm{.}150\mathrm{.}160\mathrm{.}180\mathrm{.}180\mathrm{.}190\mathrm{.}220\mathrm{.}330\mathrm{.}540\mathrm{.}711\mathrm{.}241\mathrm{.}45$

Date $1$ Mo $2$ Mo $3$ Mo $4$ Mo $6$ Mo $1$ Yr $2$ Yr $3$ Yr $5$ Yr $7$ Yr $10$ Yr $20$ Yr $30$ Yr

$09/03/20245\mathrm{.}385\mathrm{.}315\mathrm{.}195\mathrm{.}104\mathrm{.}804\mathrm{.}353\mathrm{.}883\mathrm{.}733\mathrm{.}653\mathrm{.}733\mathrm{.}844\mathrm{.}214\mathrm{.}13$

$09/04/20245\mathrm{.}335\mathrm{.}285\mathrm{.}185\mathrm{.}054\mathrm{.}744\mathrm{.}233\mathrm{.}763\mathrm{.}633\mathrm{.}563\mathrm{.}653\mathrm{.}774\mathrm{.}144\mathrm{.}06$

$09/05/20245\mathrm{.}305\mathrm{.}295\mathrm{.}155\mathrm{.}044\mathrm{.}734\mathrm{.}213\mathrm{.}753\mathrm{.}613\mathrm{.}543\mathrm{.}633\mathrm{.}734\mathrm{.}114\mathrm{.}02$

$09/06/20245\mathrm{.}285\mathrm{.}285\mathrm{.}135\mathrm{.}024\mathrm{.}694\mathrm{.}103\mathrm{.}663\mathrm{.}543\mathrm{.}503\mathrm{.}603\mathrm{.}724\mathrm{.}104\mathrm{.}03$

$09/09/20245\mathrm{.}255\mathrm{.}255\mathrm{.}114\mathrm{.}994\mathrm{.}684\mathrm{.}123\mathrm{.}683\mathrm{.}543\mathrm{.}493\mathrm{.}583\mathrm{.}704\mathrm{.}084\mathrm{.}00$

$09/10/20245\mathrm{.}185\mathrm{.}185\mathrm{.}064\mathrm{.}924\mathrm{.}654\mathrm{.}073\mathrm{.}593\mathrm{.}423\mathrm{.}433\mathrm{.}533\mathrm{.}654\mathrm{.}043\mathrm{.}97$

$09/11/20245\mathrm{.}215\mathrm{.}195\mathrm{.}104\mathrm{.}994\mathrm{.}724\mathrm{.}123\mathrm{.}623\mathrm{.}453\mathrm{.}453\mathrm{.}543\mathrm{.}654\mathrm{.}033\mathrm{.}96$