Using data from the St. Louis Federal Reserve
(FRED) (http://research.stlouisfed.org/fred2/),
analyze interest rates and the yield curve.
a. Find the most recent values from FRED for
the following six variables: (1) the 1-Year
Treasury Constant Maturity Rate (GS1),
(2) the 3-Year Treasury Constant Maturity
Rate (GS3), (3) the 5-Year Treasury Constant
Maturity Rate (GS5), (4) the 10-Year
Treasury Constant Maturity Rate (GS10),
(5) the 20-Year Treasury Constant Maturity
Rate (GS20), and (6) the 30-Year Treasury
Constant Maturity Rate (GS30).
b. Using the data found above, draw the yield
curve, explain why it has the shape it does,
and describe what is expected to happen to
interest rates in the future.