Date	Maturity	Maturity Date	CUSIP	Security Type	Coupon Rate	Price
2/3/2022	1 Mo	3/8/2022	912796S75	Treasury Bill	0	99.99733
2/3/2022	2 Mo	4/5/2022	912796T74	Treasury Bill	0	99.98
2/3/2022	3 Mo	5/3/2022	912796U72	Treasury Bill	0	99.956
2/3/2022	6 Mo	8/4/2022	912796S67	Treasury Bill	0	99.75867
2/3/2022	1 Yr	1/31/2023	91282CBG5	Treasury Note	0.00125	99.3125
2/3/2022	2 Yr	1/31/2024	9128285Z9	Treasury Note	0.025	102.5625
2/3/2022	3 Yr	1/31/2025	912828Z52	Treasury Note	0.01375	99.875
2/3/2022	5 Yr	1/31/2027	912828Z78	Treasury Note	0.015	99.25
2/3/2022	7 Yr	1/31/2029	91282CDW8	Treasury Note	0.0175	99.78125
2/3/2022	10 Yr	11/15/2031	91282CDJ7	Treasury Note	0.01375	96.03125
2/3/2022	20 Yr	2/15/2042	912810QU5	Treasury Bond	0.03125	115.3438
2/3/2022	30 Yr	11/15/2051	912810TB4	Treasury Bond	0.01875	94.0625
2/4/2022	1 Mo	3/8/2022	912796S75	Treasury Bill	0	99.99678
2/4/2022	2 Mo	4/5/2022	912796T74	Treasury Bill	0	99.97942
2/4/2022	3 Mo	5/3/2022	912796U72	Treasury Bill	0	99.94806
2/4/2022	6 Mo	8/4/2022	912796S67	Treasury Bill	0	99.72806
2/4/2022	1 Yr	1/31/2023	91282CBG5	Treasury Note	0.00125	99.21875
2/4/2022	2 Yr	1/31/2024	9128285Z9	Treasury Note	0.025	102.3125
2/4/2022	3 Yr	1/31/2025	912828Z52	Treasury Note	0.01375	99.5
2/4/2022	5 Yr	1/31/2027	912828Z78	Treasury Note	0.015	98.6875
2/4/2022	7 Yr	1/31/2029	91282CDW8	Treasury Note	0.0175	99.03125
2/4/2022	10 Yr	11/15/2031	91282CDJ7	Treasury Note	0.01375	95.125
2/4/2022	20 Yr	2/15/2042	912810QU5	Treasury Bond	0.03125	113.6875
2/4/2022	30 Yr	11/15/2051	912810TB4	Treasury Bond	0.01875	92.28125
9/18/2023	1 Mo	10/17/2023	912797HB6	Treasury Bill	0	99.58856
9/18/2023	2 Mo	11/16/2023	912797FK8	Treasury Bill	0	99.14933
9/18/2023	3 Mo	12/19/2023	912797HV2	Treasury Bill	0	98.66028
9/18/2023	6 Mo	3/14/2024	912797GX9	Treasury Bill	0	97.39417
9/18/2023	1 Yr	9/15/2024	91282CCX7	Treasury Note	0.00375	95.125
9/18/2023	2 Yr	9/15/2025	91282CFK2	Treasury Note	0.035	97.0625
9/18/2023	3 Yr	9/15/2026	91282CHY0	Treasury Note	0.04625	99.6875
9/18/2023	5 Yr	8/31/2028	91282CHX2	Treasury Note	0.04375	99.625
9/18/2023	7 Yr	8/31/2030	91282CHW4	Treasury Note	0.04125	98.3125
9/18/2023	10 Yr	8/15/2033	91282CHT1	Treasury Note	0.03875	96.46875
9/18/2023	20 Yr	8/15/2043	912810RC4	Treasury Bond	0.03625	87.125
9/18/2023	30 Yr	8/15/2053	912810TT5	Treasury Bond	0.04125	95.5625

Question 1. A. Calculate the yield-to-maturity (YTM) of all the bonds in the data, including those on Sep 18, 2023. Assume the Treasury security pays coupon on a semi-annual basis if the coupon rate is not zero. Also assume that the face value of a bond is 100 (corresponding to $1,000 in actuality). Hint: you can use the yield function in Excel for this calculation. Produce a snippet of your results here.

b. Calculate the change in the YTM of each type of bond at Feb 4, 2022 relative to Feb 3, 2022, similar to what you did for the prices of these bonds in part a of Question 1above. Then, put thechanges in prices and the changes in YTM together.Produce a snippet of the results here. What can you conclude about the relationship between bond prices and YTM?

Question 2.

a. Plot the yield curves at two time points, on Feb 3, 2022, and on Sep 18, 2023.What can you say about the shapes of these two curves? Which curve slopes upward? Which curve slopes downward? Produce a snippet of the two curves here.

b. . Discuss the implications of an inverted yield curve on the prospect of an economic recession. In business press you will notice that people have been talking about using an inverted yield curve to predict economic recessions. Use the knowledge we learned in Chapter 4 about the relationship between the level of interest rate and economic recession to explain why there may be some truth in these arguments.

c. The exact shape of the most recent yield curve (on Sep 18, 2023) may also help us infer, to a certain extent, the possible timing of a change in the Feds interest rate policy. Based on these YTMs and their corresponding maturities, when do you expect the Fed to possibly begin to lower the interest rate? Calculate the maximum level of the expected short-term interest rates and compare them to the spot short-term interest rates[1] to support your argument. Produce a snippet for your calculations here. (Hint: use the liquidity premium theory and its mathematical implications and the fact that term premium typically increases with maturities to infer a reasonable estimate of the expected short-term interest rates, and compare them with the corresponding spot rate to answer this question).