I’m studying for my Economics class and don’t understand how to answer this. Can you help me study?
Pls follow the requirement and finish the assignment.
Term Structure of Interest Rates: Go to http://www.yieldcurve.com on the left hand side click on Yield Curves.
This web site allows you to plot the yield curves for UK Gilts and US Treasuries for different periods.
- List the three facts about the term structure of interest rates
- Select a period and print a plot of an upward yield curve. Make comments using the theories you studied about the term structure of interest rates.
- Select another period and print a plot of an inverted yield curve and make comments using the theories you studied about the term structure of interest rates.
- Compare, generally, between the UK Gilt and the US treasury yield curves in 2. And 3 citing the power of prediction of the theories of term structure of interest rates in predicting the 2008/2009 financial crisis.
Requirements: 1 day | .doc file