Reference no: EM131839914

Given the following data on debt U.S. Treasury debt instruments: (Show all work in a way I can do it by wiriting)

PS: I know you are only allow to do less than 5 exercises, so can you please just do the exercises  E,F,G,H? Another person already helped me understand a little how to calculate the first four exercises. Thank you!

1-year note yield = 4.42%                          

2-year note yield = 4.69%                          

3-year note yield = 5.02%                          

4-year note yield = 5.02%                          

5-year note yield = 5.35%                          

6-year note yield = 5.50%

7-year note yield = 5.64%

8-year note yield = 5.70%

9-year note yield = 5.86%

10-year note yield = 5.95%

11-year note yield = 5.90%                        

12-year note yield = 5.99%

And constant premiums of 0, .17%, .41%, .63%, .82%, .98%, 1.12%, 1.22%, 1.30%, 1.37%, 1.42%, 1.45%, 1.47%

a) Calculate the expected market yields for a (1,5,2) path.

b) Calculate the expectations yields for a (3,4,1) path.

c) Calculate the real world yield for a (3,5) path.

d) Calculate the expected preferred habitat yield for a 5-year note purchased at the beginning of year 2.

e) Calculate the expectations yield on a 4-year note purchased at the beginning of year 5.

f) Determine the expectations yield on a 10-year note purchased today.

g) Determine the yield on a 12-year Treasury note purchased today.

h) Describe the yield curve and provide a general interpretation of what implies about the economy.