statistics

posted by .

Investment analysts generally believe the interest rate on bonds is inversely related to the prime interest rate for loans; that is bonds perform well when lending rates are down and perform poorly when interest rates are up. Can the bond rate be predicted by the prime interest rate?
Use the following data to construct a scatter graph and then fit a regression line to the data. Report the regression formula and the r-squared value from the chart (right click on the line, select "Add Trendline" and select options to show these metrics).
bond Rate/ Prime Interest Rate
5 % 16%
12 6
9 8
15 4
7 7

Similar Questions

1. Statistics

Mortgage Rates In 2001, the mean contract interest rate for a conventional 30-year first loan for the purchase of a single-family home was 6.3 percent, according to the U.S. Federal Housing Board.A real estate agent believes that interest …
2. finance (structure of interest rates)

Some analysts believe that the term structure of interest reates is determined by the behavior of various types of financial institutions. this theory is called the: A. expectations hypothesis B. segmentation theory C. liquidity premium …
3. finance (higher interest rate)

A higher interest rate (discount rate) would?
4. macroeconomics

1 The most important reason for the slope of the aggregate demand curve is that as the price level _______. 1) increases, interest rates decrease, and investment increases 2) decreases, interest rates decrease, and investment decreases …
5. Stats

Question 3 Investment analysts generally believe the interest rate on bonds is inversely related to the prime interest rate for loans; that is, bonds perform well when lending rates are down and perform poorly when interest rates are …
6. social studies

1)An interest rate is a special type of? a. loan b. price c. bank d. service 2) How does a compound interest rate differ from a simple interest rate?
7. Finance

What is the value of 15-year corporate bonds, with a coupon rate of 9%, if current interest rates on similar bonds is 8%?
8. Social studies

How die a compound interest rate differ from a simple interest rate?
9. Social Studies

An interest rate is a special type of (1 point) loan. **price. bank. service. 2. How does a compound interest rate differ from a simple interest rate?
10. UWI

Digicel Jamaica has raised financing by issuing 25-year bonds on January 1, 2009. They mature on December 31, 2033 and have a par value of \$1,000 and a coupon rate of 8%. Coupon payments are made semi-annually. a)What is interest rate …

More Similar Questions