University of Illinois at Urbana-ChampaignDepartment of EconomicsAram GrigoryanProject 1, ECON426 - Monetary Economics1Sun March 1st1. (25 percent) Go to Fred database and download the following series for the past 10 years: Real PersonalConsumption Expenditures(Q, SA) , Real Gross Private Domestic Investment (Q, SA). Calculate thegrowth rates for the both series. compare the calculated growth rates to the logarithm of ratio2. Whatare the time points where the difference is high? Explain why.2. (25 percent) Download the weekly data on treasury bond yields (one option is treasury.gov) for 2020.plot the evolution of the yield for the 3 month and 30 year bonds over time using python. Plot themost recent yield curve.3. (25 percent) Consider investing money with [yearly]interest rate of 10%. If you get interest paymentonly once in the end of the year, unit investment will yield you 1.1. If you had the option of splittingthe interest rate to 10/2 % = 5% and receive interest payments twice a year, then you’ll get 1.052>1.1.Splitting that further to n times and receiving 10n % interest rate will make your unit investment payback more and more through the year. Plot the int代写ECON426留学生作业、代做Monetary Economics作业、代写Python编程语言作业 代写Pythoerest payments as a function of n, that is, thesequence 1.1, then 1.052, etc till 24 times per period(that is, you get the interest payment twice amonth). Compare that to the continuous compounding rate, ei.4. (25 percent) During the class we established the fact that interest rates(discount rates) are negativelyaffecting the PV. Afterwards, we concluded that if an investor is interested in getting a certain yieldfrom an investment, she can calculate the fair price for the bond by discounting the future inflows bythat yield. If the market price (which will be a proxy for average expected yield) is lower, then theinvestor will buy the bond. Imagine a scenario of the following investing decision: buy a treasury bondwith face value of $1000 and $100 coupons for 30 years that sells for $1280, or a treasury note withsimilar face value that has 10 years of maturity, issues $70 coupons every year and is selling for $1000.Calculate the YTM and the MaCaulay duration for both using python. Which one will you pick?1This project requires some basic programming skills that will be discussed on during the class.2i.e. compare xt−xt−1xt−1to ln�xtxt−1�.1转自：http://www.6daixie.com/contents/3/4933.html