Chapter 11.1, Problem 57E

Work these exercises.

Treasury Rates Treasury maturity rates are shown in the figure on the next page, where S(t) represents the short-term 1-year treasury bill, M(t) represents the medium-term 10-year treasury note, and L(t) represents the long-term 30-year treasury bond. Use the figure to approximate the following quantities. (Data from: Federal Reserve Economic Research.)

a. $\underset{t\to 2015}{\lim }\left[L\left(t\right)-M\left(t\right)\right]$

b. $\underset{t\to 2012}{\lim }\left[L\left(t\right)-M\left(t\right)\right]$

c. $\underset{t\to 2009}{\lim }\left[M\left(t\right)-S\left(t\right)\right]$