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I need help with 2 economics/statistics questions
Description
(20 points) Risk Premium a. Please go to the website http://research.stlouisfed.org/fred2/categories. Under “Money, Banking, and Finance”, select “interest rates”, and then “Commercial Paper”. Find the relevant interest rate series (monthly series, not inflation-indexed) as specified below. Download the data from January 2000 to August 2024 (the most recent month) into an Excel spreadsheet. Add the yield offered on a 3-month T-bill to the spreadsheet. 90-day AA Financial Commercial Paper Interest Rate 90-day AA Nonfinancial Commercial Paper Interest Rate
b. Please calculate the risk premiums in the spreadsheet. To clearly visualize the trends, plot the risk premiums in a graph.
c. How did the risk premiums on financial and nonfinancial commercial papers change over time? What caused the changes? How did they relate to changes in economic conditions over time?