Question: Part 2: (20 Marks) A. Construct and present a yield curve, spot curve and forward curve as at the end of January 2020 and the

Part 2: (20 Marks) A. Construct and present a yield curve, spot curve and forward curve as at the end of January 2020 and the end of July 2020. Consider the government bond information on the RBA website. Your spot curve and forward curve estimation should go out no more than five years. Present and discuss your findings. (8 marks) B. Review the predictive ability of the yield, spot and forward curves with the comprehensive reference to the relevant academic literature. Discuss the curves that you have estimated in Part 2 (A) regarding this literature. Consider the current COVIDlQ| pandemic issue, does the January 2020 forward curve appear to predict the six-month spot rates in July 2020? Comment. (12 marks)

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