What was the state of the economy the same night

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Question: Assume that there are only 5 Treasury Bonds traded in the bond market. These bonds are zero- coupon bonds and have face value of $100. The bond prices and maturities for these bonds on November 7, 2016 at 10:30am were: 1yr 2yr 3yr $99 $96 $91 On 11:00pm of the same day, the bond prices were: 1yr 2yr 3yr $96 $93 $91 10yr 30yr $70 $30 10yr 30yr $75 $45 Find the yields-to-maturity for all the above bonds. In two separate graphs, draw the two yield- curves for November 7, 2016. What was the state of the economy in the morning and what was the state of the economy the same night? What were the changes in the demand of these bonds that possibly lead to these price changes?

Reference no: EM133715916

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