Graph the nominal interest rate and the real interest rate

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Reference no: EM131305419

Go to www.gpoaccess.gov, a Web site that has the statistical tables for the Economic Report of the President. On the left of your screen, you will see a category entitled "Database Features." Click on "Downloadable Reports/Tables."

For the years 1970 to 2009, download the data on the interest rates on 10-year U.S. Treasury bonds and on the inflation rate, as measured by annual changes in the consumer price index.

Use these data to calculate the real interest rate. Graph the nominal interest rate and the real interest rate.

Based on your calculations of the real interest rate, what would have been the best year to have invested in 10-year U.S. Treasury bonds?

Reference no: EM131305419

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