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Assignment tips.

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Presentation on theme: "Assignment tips."— Presentation transcript:

1 Assignment tips

2 Yield curve formation example
Time to maturity YTM note 1 yr 2 yrs 3yrs 5 yrs 8% 8.5% 8.9% 9.2% One year T-bond Two year T-bond Three year T-bond five year T-bond Time to maturity YTM note 1 yr 2 yrs 3yrs 5 yrs 8% 8.5% 8.9% 9.2% One year T-bond Two year T-bond Three year T-bond five year T-bond

3 How the slope of the Yield is derived
March February January 3-month Treasury bill rate (percent) 0.10 0.13 0.08 10-year Treasury bond rate (percent) 2.04 2.00 1.87 Yield curve slope (basis points) 194 187 179

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