Question: Given the following Treasury bond yield information, construct a graph of the yield curve. Maturity Yield 1 year 5.37% 2 years 5.47% 3 years 5.65%

Given the following Treasury bond yield information, construct a graph of the yield curve.

Maturity	Yield
1 year	5.37%
2 years	5.47%
3 years	5.65%
4 years	5.71%
5 years	5.64%
10 years	5.75%
20 years	6.33%
30 years	5.94%

With the Treasury yield information given in Part b calculate the following rates:

The 1-year rate 1 year from now

The 2-year rate 1 year from now

The 3-year rate 1 year from now

Compare these calculated rates with the 1, 2, and 3-year rates given in Part II above. What is the yield curve prediction about interest rates a year from today?

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