Prepare a yield curve or term structure of interest rates

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Go to https://www.bloomberg.com/markets/rates-bonds/government-bonds/us/. Based on the most recently released daily data (i.e., the data released on the day when you work on this assignment), complete parts a and b below:

a. Bank prime loan charges 3.75% currently. Find yield for 12-month Treasury bills from the Bloomberg website and indicate the size of current default risk premiums for bank prime loans.

b. Prepare a yield curve or term structure of interest rates based on today's yields on U.S. Treasury securities. Briefly comment on the shape of current yield curve (i.e., is it normal or inverted? Steep or flat? What does it tell you about the current status of the US economy?)

Reference no: EM131407088

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