Data for yield Curve (Table 1) 26 Jan 2010 Data

Questions:

1. Plot the yield curve from the data in the table above. Describe the yield curve and what the yield curve might suggest about the existing financial climate.

2. Discuss the other two yield curve types and what they suggest for the economy.

Yield Last Month Maturity 3 Month 6 Month 2 Year 0.14 US Treasury Bonds Rates Yesterday Last Week 0.13 0.14 0.16 0.17 0.10 0.19 0.17 0.62 0.57 0.56 0.64 3 Year 1.02 0.99 0.98 1.06 5 Year 1.98 1.93 1.93 2.02 10 Year 3.42 3.33 3.34 3.33 30 Year 4.59 4.49 4.53 4.39