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Yield curve and Excel

Assuming a real risk-free rate of 2% and a MRP +0.1x(t)%, t is the # of years to maturity, estimate the interest rate in Jan 1981 on bonds that mature in 1,2,5 and 20 years, and use Excel to draw a yield curve based on this information.

Solution Summary

The solution estimates the interest rate and draws a yield curve using excel.