Plot the forward rates on the same dates used before, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, and XXXXXXXXXXDescribe how the forward rates changed from month to month. The approximate forward rates found...

Plot the forward rates on the same dates used before, 1985-12- 01, 1986-01-01, 1986-02-01, and 1986-03-01. Describe how the forward rates changed from month to month. The approximate forward rates found by numerically differentiating a interpolating spline are “wiggly.”

The wiggles can be removed, or at least reduced, by using a penalized spline instead of an interpolating spline. See Chap. 21.