Go to the CANSIM database and download monthly data, from January 1976 to January 2021, on the three-month T-bill rate (series V122531) and the interest rate on long-term Canada bonds (Government of Canada benchmark bond yields, long term )(series V122544). (Note these are daily rates – convert it into monthly rates) a) Construct a yield curve by creating a line graph for January 2021 and for the same month in 2020, across all the maturities. (on excel) b) How do the yield curves compare? What does the changing slope say about potential changes in economic conditions?
Go to the CANSIM database and download monthly data, from January 1976 to January 2021, on the three-month T-bill rate (series V122531) and the interest rate on long-term Canada bonds (Government of Canada benchmark bond yields, long term )(series V122544). (Note these are daily rates – convert it into monthly rates) a) Construct a yield curve by creating a line graph for January 2021 and for the same month in 2020, across all the maturities. (on excel) b) How do the yield curves compare? What does the changing slope say about potential changes in economic conditions?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
V5 2. Go to the CANSIM database and download monthly data, from January 1976 to January
2021, on the three-month T-bill rate (series V122531) and the interest rate on long-term
Canada bonds (Government of Canada benchmark bond yields, long term )(series
V122544). (Note these are daily rates – convert it into monthly rates)
a) Construct a yield curve by creating a line graph for January 2021 and for the same
month in 2020, across all the maturities. (on excel)
b) How do the yield curves compare? What does the changing slope say about
potential changes in economic conditions?
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