Order Description
MS Excel: Working with the data.
Read the tables in the excel file attached (all the windows). Create your own plot for all four series in levels. Note: I have transformed the series in natural log and created a plot using them. In your report please write a small paragraph for each of the following questions.
Do we observe all the interest rates move in similar fashion?
Do they fall during a recession and rise after a recession? You can got to NBER website for recession dates : http://www.nber.org/cycles.html (Links to an external site.). e.g. you can use the information in the following way. In November 1973 (this will also fall into quarter 4 for quarterly data) the recession began. In March 1975 (this will be under quarter 1) the recession ended.
Does transforming the data in natural log change anything?
Create a plot for 10 year and 5 year treasury rates like the one you have in your sample. Use the natural log transformation to create the plot. Please make sure you have the title and legend in your plot.
write one paragraph explaining the trend you observe.
Excel Homework:
Instruction for the write up:
A. Introduction:
In this section please provide a brief description of the data that you are using.
B. Answering the questions-
1. Please insert the graph, write a short paragraph explaining what you observe from the data.
2. For this part, you need to visit the web link I provided and follow the instructions. In your write up please be very specific about your conclusion. In so doing make sure you refer to dates.
3. This is again a short answer. You must insert the relevant diagram from the given dataset. You should be able to compare this diagram with the diagram you used to answer question 1, and compare the two. Also note (Log(A)-Log(B)=percentage change between two points). Think about this formula and your answer. How does this relate to log transformation?
4. In this case you are required to re-create something. I expect you two re-create the figure, insert it and write a paragraph explaining the data.
5. In this case you need to compare the trend in the data presented to you. Do they have similar pattern (e.g. two of them may have similar pattern).
C. Conclusion: Explain in your own words what have you learnt from this exercise.
Period LFF L3TB
1962-01-01 0.896088025 1.00063188
1962-04-01 0.959350221 0.996948635
1962-07-01 1.047318994 1.043804052
1962-10-01 1.068153081 1.033184483
1963-01-01 1.088561953 1.068153081
1963-04-01 1.085189268 1.078409581
1963-07-01 1.193922468 1.190887565
1963-10-01 1.238374231 1.249901736
1964-01-01 1.241268589 1.261297871
1964-04-01 1.249901736 1.244154594
1964-07-01 1.241268589 1.252762968
1964-10-01 1.272565596 1.305626458
1965-01-01 1.381281819 1.358409158
1965-04-01 1.406096988 1.353254507
1965-07-01 1.406096988 1.353254507
1965-10-01 1.425515074 1.427916036
1966-01-01 1.517322624 1.528227857
1966-04-01 1.589235205 1.521698998
1966-07-01 1.686398954 1.617406082
1966-10-01 1.717395054 1.648658626
1967-01-01 1.576914721 1.506297154
1967-04-01 1.388791241 1.294727168
1967-07-01 1.358409158 1.458615023
1967-10-01 1.420695788 1.558144618
1968-01-01 1.560247668 1.619388243
1968-04-01 1.786746927 1.70837786
1968-07-01 1.781709133 1.648658626
1968-10-01 1.773255998 1.720979287
1969-01-01 1.877937165 1.806648082
1969-04-01 2.100468909 1.824549292
1969-07-01 2.197224577 1.948763218
1969-10-01 2.192770227 1.996059933
1970-01-01 2.151762203 1.975468951
1970-04-01 2.069391206 1.89761986
1970-07-01 1.908059925 1.845300236
1970-10-01 1.720979287 1.677096561
1971-01-01 1.348073148 1.340250423
1971-04-01 1.517322624 1.44926916
1971-07-01 1.701105101 1.611435915
1971-10-01 1.564440547 1.439835128
1972-01-01 1.264126727 1.238374231
1972-04-01 1.456286733 1.327075001
1972-07-01 1.553925203 1.437462648
1972-10-01 1.633154439 1.581038438
1973-01-01 1.867176109 1.742219024
1973-04-01 2.050270164 1.887069649
1973-07-01 2.350422422 2.121063216
1973-10-01 2.306577114 2.014903021
1974-01-01 2.234306252 2.034705648
1974-04-01 2.407845604 2.099244169
1974-07-01 2.501435952 2.102913898
1974-10-01 2.255493485 1.996059933
1975-01-01 1.864080131 1.754403683
1975-04-01 1.680827909 1.686398954
1975-07-01 1.818076778 1.845300236
1975-10-01 1.699278616 1.729884066
1976-01-01 1.574846468 1.593308531
1976-04-01 1.648658626 1.640936579
1976-07-01 1.663926098 1.638996715
1976-10-01 1.587192303 1.539015448
1977-01-01 1.539015448 1.532556868
1977-04-01 1.638996715 1.576914721
1977-07-01 1.757857918 1.704748092
1977-10-01 1.871802177 1.809926773
1978-01-01 1.909542505 1.854734268
1978-04-01 1.982379829 1.86872051
1978-07-01 2.088153482 1.987874348
1978-10-01 2.251291799 2.14710019
1979-01-01 2.313525033 2.239645293
1979-04-01 2.31944221 2.237513096
1979-07-01 2.386926241 2.266957915
1979-10-01 2.602689685 2.471483629
1980-01-01 2.691243083 2.591516385
1980-04-01 2.582486978 2.263844265
1980-07-01 2.265921109 2.212660385
1980-10-01 2.749192144 2.610069793
1981-01-01 2.816007343 2.663749942
1981-04-01 2.865623588 2.700689847
1981-07-01 2.870735783 2.711377991
1981-10-01 2.609334228 2.466403178
1982-01-01 2.653241965 2.547881449
1982-04-01 2.674838067 2.520112906
1982-07-01 2.397895273 2.231089091
1982-10-01 2.227861547 2.066862759
1983-01-01 2.162172939 2.093097868
1983-04-01 2.17588744 2.129421474
1983-07-01 2.246014742 2.213753879
1983-10-01 2.242835089 2.174751721
1984-01-01 2.271094426 2.217027205
1984-04-01 2.354228326 2.282382386
1984-07-01 2.431857429 2.33408376
1984-10-01 2.238579763 2.178155015
1985-01-01 2.136530509 2.101692151
1985-04-01 2.074429 2.010894999
1985-07-01 2.065596135 1.961502244
1985-10-01 2.085672091 1.968509981
1986-01-01 2.069391206 1.931521412
1986-04-01 1.937301775 1.814824742
1986-07-01 1.834180185 1.710187816
1986-10-01 1.834180185 1.677096561
1987-01-01 1.827769907 1.711994501
1987-04-01 1.89009537 1.731655545
1987-07-01 1.921324674 1.798404012
1987-10-01 1.93441577 1.769854634
1988-01-01 1.89761986 1.743968805
1988-04-01 1.965712776 1.827769907
1988-07-01 2.075684493 1.948763218
1988-10-01 2.132982309 2.045108863
1989-01-01 2.243896097 2.145931283
1989-04-01 2.275213896 2.128231706
1989-07-01 2.207174908 2.060513532
1989-10-01 2.157559321 2.034705648
1990-01-01 2.1102132 2.048982334
1990-04-01 2.109000344 2.047692843
1990-07-01 2.100468909 2.012232792
1990-10-01 2.051556338 1.944480556
1991-01-01 1.874874376 1.796747011
1991-04-01 1.763017 1.715598108
1991-07-01 1.740466175 1.682688374
1991-10-01 1.587192303 1.515127233
1992-01-01 1.396244692 1.360976553
1992-04-01 1.32972401 1.302912752
1992-07-01 1.193922468 1.124929597
1992-10-01 1.111857515 1.121677562
1993-01-01 1.111857515 1.085189268
1993-04-01 1.098612289 1.088561953
1993-07-01 1.115141591 1.098612289
1993-10-01 1.098612289 1.118414916
1994-01-01 1.160020917 1.181727195
1994-04-01 1.366091654 1.386294361
1994-07-01 1.501852702 1.499623046
1994-10-01 1.642872689 1.663926098
1995-01-01 1.752672081 1.74745921
1995-04-01 1.795087259 1.720979287
1995-07-01 1.756132292 1.680827909
1995-10-01 1.752672081 1.660131027
1996-01-01 1.678963975 1.595338988
1996-04-01 1.658228077 1.613429934
1996-07-01 1.665818246 1.62924054
1996-10-01 1.665818246 1.60341984
1997-01-01 1.656321498 1.621366483
1997-04-01 1.710187816 1.619388243
1997-07-01 1.713797928 1.619388243
1997-10-01 1.706564623 1.627277831
1998-01-01 1.70837786 1.619388243
1998-04-01 1.701105101 1.60341984
1998-07-01 1.713797928 1.574846468
1998-10-01 1.583093937 1.446918983
1999-01-01 1.553925203 1.483874689
1999-04-01 1.558144618 1.492904096
1999-07-01 1.627277831 1.53686722
1999-10-01 1.671473303 1.619388243
2000-01-01 1.729884066 1.710187816
2000-04-01 1.834180185 1.742219024
2000-07-01 1.874874376 1.795087259
2000-10-01 1.873339456 1.795087259
2001-01-01 1.72455072 1.570697084
2001-04-01 1.474763009 1.297463147
2001-07-01 1.266947603 1.166270937
2001-10-01 0.783901544 0.647103242
2002-01-01 0.542324291 0.542324291
2002-04-01 0.559615788 0.542324291
2002-07-01 0.553885113 0.494696242
2002-10-01 0.392042088 0.292669614
2003-01-01 0.21511138 0.139761942
2003-04-01 0.223143551 0.039220713
2003-07-01 0.019802627 -0.072570693
2003-10-01 0 -0.083381609
2004-01-01 0 -0.083381609
2004-04-01 0.009950331 0.076961041
2004-07-01 0.350656872 0.39877612
2004-10-01 0.667829373 0.698134722
2005-01-01 0.90016135 0.932164081
2005-04-01 1.078409581 1.05431203
2005-07-01 1.238374231 1.211940974
2005-10-01 1.378766095 1.342864803
2006-01-01 1.488399584 1.481604541
2006-04-01 1.589235205 1.549687908
2006-07-01 1.656321498 1.591273942
2006-10-01 1.658228077 1.589235205
2007-01-01 1.658228077 1.605429891
2007-04-01 1.658228077 1.556037136
2007-07-01 1.62924054 1.460937904
2007-10-01 1.512927012 1.226712291
2008-01-01 1.184789985 0.722705983
2008-04-01 0.737164066 0.482426149
2008-07-01 0.688134639 0.405465108
2008-10-01 -0.579818495 -1.171182982
2009-01-01 -1.660731207 -1.560647748
2009-04-01 -1.714798428 -1.771956842
2009-07-01 -1.832581464 -1.832581464
2009-10-01 -2.120263536 -2.813410717
2010-01-01 -2.040220829 -2.207274913
2010-04-01 -1.660731207 -1.897119985
2010-07-01 -1.660731207 -1.897119985
2010-10-01 -1.660731207 -1.966112856
2011-01-01 -1.832581464 -2.040220829
2011-04-01 -2.302585093 -2.995732274
2011-07-01 -2.525728644 -3.506557897
2011-10-01 -2.525728644 -4.605170186
2012-01-01 -2.302585093 -2.659260037
2012-04-01 -1.897119985 -2.407945609
2012-07-01 -1.897119985 -2.302585093
2012-10-01 -1.832581464 -2.407945609
2013-01-01 -1.897119985 -2.407945609
2013-04-01 -2.120263536 -2.995732274
2013-07-01 -2.407945609 -3.506557897
2013-10-01 -2.407945609 -2.813410717
2014-01-01 -2.659260037 -2.995732274
2014-04-01 -2.407945609 -3.506557897
2014-07-01 -2.407945609 -3.506557897
2014-10-01 -2.302585093 -3.912023005
2015-01-01 -2.207274913 -3.912023005
2015-04-01 -2.120263536 -3.912023005
2015-07-01 -2.040220829 -3.218875825
2015-10-01 -1.832581464 -2.120263536
2016-01-01 -1.021651248 -1.237874356
