Bond prices and the yield curve Go to the Japanese Ministry of Finance Web site and get the historical data about government bond yields. The data divides government bonds according to their maturity....


Bond prices and the yield curve Go to the Japanese Ministry of Finance Web site and get the historical data about government bond yields. The data divides government bonds according to their maturity. a. Construct the yield curve for the latest available data. What do you observe? Does the slope of the yield curve correspond to the relationship between bond maturity and yields as explained in the chapter? b. Pick another period, preferably a year before the date chosen for part (a). Construct the yield curve again. What has happened to the yield curve during the period? How can you explain it?

Nov 19, 2021
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