Choose three of the following questions . Please show all your calculations for the Problems.
By how much has inflation expectation changed from one year ago? Is this reflected in the Yield Curve?
Does the recent increase in Long-term rates indicate optimism about future growth, concern about inflation? Explain.
What might the 10-Year to 3-month Treasury Spreads portend for bank profitability in 2021 vs. 2020? Explain.
What is the bond’s current YTM?
What is the expected selling price for the bonds in three years?
What holding period yield will the bank earn if it buys the bonds today and can sell them at the expected price?
