Question: Answer the Questions please with your own words and calculation if needed so i can up vote 1. The following rates are actual yields on

Answer the Questions please with your own words and calculation if needed so i can up vote

1. The following rates are actual yields on US yield curve observed on the dates given:

1 Mo

2 Mo

3 Mo

6 Mo

1 Yr

2 Yr

3 Yr

5 Yr

7 Yr

10 Yr

20 Yr

30 Yr

02/19/2021

0.03

0.03

0.04

0.06

0.07

0.11

0.22

0.59

0.98

1.34

1.98

2.14

08/08/2019

2.08

1.97

1.91

1.86

1.72

1.48

1.44

1.42

1.47

1.52

1.8

1.98

  1. Plot the yield curves for 2 February 2021 and 8 August 2019. Interpret these yield curves on investor expectations with regards to the future state of the US economy.
  2. Given information about yields on 2-19-2021, calculate the expected 4-yar yield that the market is expecting between 19 February 2024 and 19 February 2028. Also calculate the 20-year yield that is expected to prevail between 19 February 2031 and 19 February 2041 under the expectations theory of the term structure of interest rates.

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