U.S. Treasury Nominal Yield Curve 1 Mo 2 Me 3 Mo 6 MO 1 Yt 2 YT 3 Ys 7 YT 10 Yr 20 Yr 30 Y. 2/17/22 0.06 0.65 1.05 1.49 1.70 1.85 1.97 2.31 https://www.treasury.gOVESOUTce-center/data-chart-center/interest-rates/Pages/TextView.aspx?datz-yield U.S. Treasury Real Yield Curve DATE SYR 7 YR 10 YR 20 YR 30 YR 2/17/22 -1.02 -0.46 -0.04 0.19 https:www.treasury.gov.tesource-center'data-chart-center interest rates/Pages/TextView.aspx?data=realyield b. Calculate the Implied Forward nominal interest rate for a two-year maturity government bond, five years from Today (1+R2) = (1+oRs) (1+sfa)? then, solving for sf, 5f2 | (1 + OR)1/2 - 1 (1 + R) Note: In general, implied Forward interest rate for a N year maturity government bond, t years from Today: (1+0Rx+x)'+w71/1 fN= + -1 (1+OR) C. Please explain what factors and assumptions, other than the expectation theory, affect the shape of the yield curve and estimated implied forward rates. To Focus U.S. Treasury Nominal Yield Curve 1 Mo 2 Me 3 Mo 6 MO 1 Yt 2 YT 3 Ys 7 YT 10 Yr 20 Yr 30 Y. 2/17/22 0.06 0.65 1.05 1.49 1.70 1.85 1.97 2.31 https://www.treasury.gOVESOUTce-center/data-chart-center/interest-rates/Pages/TextView.aspx?datz-yield U.S. Treasury Real Yield Curve DATE SYR 7 YR 10 YR 20 YR 30 YR 2/17/22 -1.02 -0.46 -0.04 0.19 https:www.treasury.gov.tesource-center'data-chart-center interest rates/Pages/TextView.aspx?data=realyield b. Calculate the Implied Forward nominal interest rate for a two-year maturity government bond, five years from Today (1+R2) = (1+oRs) (1+sfa)? then, solving for sf, 5f2 | (1 + OR)1/2 - 1 (1 + R) Note: In general, implied Forward interest rate for a N year maturity government bond, t years from Today: (1+0Rx+x)'+w71/1 fN= + -1 (1+OR) C. Please explain what factors and assumptions, other than the expectation theory, affect the shape of the yield curve and estimated implied forward rates. To Focus