Question: Using the same website, retrieve interest rate data at the beginning of the last 20 quarters for the three-month T-bill and another money market security
Using the same website, retrieve interest rate data at the beginning of the last 20 quarters for the three-month T-bill and another money market security and place the data in two columns of an Excel spreadsheet. Derive the change in interest rates for both money market securities on a quarterly basis. Apply regression analysis in which the quarterly change in the interest rate of the risky money market security is the dependent variable and the quarterly change in the T-bill rate is the independent variable (see Appendix B for more information about using regression analysis). Is there a positive and significant relationship between the interest rate movements? Explain.
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