Frohlich
Name ____________________
FIN 4504
1.
(1) Using Treasury Bonds Notes and Bills from the Wall Street, construct a table
listing the coupon rate, maturity month and year, and the appropriate yield on the
securities you are using to graph on the yield curve. (2) Draw the Yield Curve.
Use the designated WSJ—(3) Attach Copies of the proper section
Rate
2
Maturity Month/Year
Yield
Create Tables such as the one above listing the coupon rate, maturity month and year, and the
appropriate yield on the securities you are using to graph the yield curve using Treasuries
from a year ago (September 2001), two years ago (September 2000)and three years ago
(September 1999). Draw the three yield curves and place on the same graph as the one in
problem 1. Your graph should have three curves upon it. Attach the documentation for the
2001, 2000 and 1999 curves. Be sure to label both appropriately.
1
3
Given the Yield Curves you've constructed in #1 and #2 explain the differences in the level
of interest rates between the years using the Loanable Funds and the Liquidity
Preference theory
4. Explain the shape of the 2002 curve using the unbiased expectation theory and the segmentation
theory and its significance to the investor.
2
3