As bond ratings drop, what happens to the standard deviation of yields to maturity? Pivot Table Average
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Pivot Table Average of Credit Spread Years to Maturity Rating AAA AA A ВВВ ВВ B CCC CC Grand Total V 3.000 4.000 5.000 6.000 0.008296154 0.007601818 0.011565 0.013528182 0.012418333 7.000 Grand Total 0.01019 0.010310588 0.021664 0.01814509 0.01049 0.014865645 0.0152975 0.01944 0.020461622 0.020050909 0.021979667 0.020026667 0.018989186 0.020972941 0.021506723 0.020802111 0.021336957 0.0199875 0.020593115 0.026459732 0.026777439 0.031787944 0.03069843 0.028025176 0.029100693 0.026005714 0.028875322 0.053530952 0.053429556 0.054054 0.052817 0.055784286 0.049188519 0.04502 0.05295761 0.06062 0.072980244 0.080037059 0.077369545 0.075367692 0.070026809 0.067518056 0.062456923 0.1128084 0.114232083 0.112488333 0.1230925 0.11694 0.114476 0.188656667 0.188656667 0.03828615 0.039674726 0.040025559 0.03542658 0.031392792 0.031461914 0.026874054 0.036183364 1.000 2.000 Pivot Table Average of Credit Spread Years to Maturity Rating AAA AA A ВВВ ВВ B CCC CC Grand Total V 3.000 4.000 5.000 6.000 0.008296154 0.007601818 0.011565 0.013528182 0.012418333 7.000 Grand Total 0.01019 0.010310588 0.021664 0.01814509 0.01049 0.014865645 0.0152975 0.01944 0.020461622 0.020050909 0.021979667 0.020026667 0.018989186 0.020972941 0.021506723 0.020802111 0.021336957 0.0199875 0.020593115 0.026459732 0.026777439 0.031787944 0.03069843 0.028025176 0.029100693 0.026005714 0.028875322 0.053530952 0.053429556 0.054054 0.052817 0.055784286 0.049188519 0.04502 0.05295761 0.06062 0.072980244 0.080037059 0.077369545 0.075367692 0.070026809 0.067518056 0.062456923 0.1128084 0.114232083 0.112488333 0.1230925 0.11694 0.114476 0.188656667 0.188656667 0.03828615 0.039674726 0.040025559 0.03542658 0.031392792 0.031461914 0.026874054 0.036183364 1.000 2.000
Expert Answer:
Answer rating: 100% (QA)
To determine the relationship between bond ratings and the standard deviation of yields to maturity ... View the full answer
Related Book For
Statistics For Business And Economics
ISBN: 9780321826237
12th Edition
Authors: James T. McClave, P. George Benson, Terry T Sincich
Posted Date:
Students also viewed these finance questions
-
Now suppose the investor in Problem 3 also sells forward 5,000 at a forward exchange rate of $2.10/. a. Recalculate the dollar-denominated returns for each scenario. b. What happens to the standard...
-
The mean and the standard deviation of the sample of 65 customer satisfaction ratings are and = 42.95 and s = 2.6424. a. What does the histogram in Figure 2.15 say about whether the Empirical Rule...
-
Explain what happens to the standard deviation of returns of a portfolio as the number of stocks in the portfolio increases.
-
1) Identify the population and sample from the following statements: a) A survey conducted at NSU has found that out of 371 students, 52 are left-handed b) In a rescue shelter, the height and weight...
-
A 6.0-cmdiameter horizontal pipe gradually narrows to 4.0cm. When water flows through this pipe at a certain rate, the gauge pressure in these two sections is 32.0kPa and 24.0 kPa, respectively. What...
-
In problem, approximate each number using a calculator. Express your answer rounded to three decimal places. (a) 3.1 27 (b) 3.14 2.71 (c) 3.141 2.718 (d) e
-
Discuss this statement. Revenue management does not always lead to profit maximisation so should not be used.
-
Assume that your company uses a release methodology for its sales system. The current version is 4.5. Decide whether each of the following changes would justify a version 5.0 release, or be included...
-
Suppose that you are testing the hypotheses Ho: = 16 vs. H: > 16. A sample of size 64 results in a sample mean or 15.5 and a sample standard deviation of a) What is the standard error of the mean? b)...
-
You have been hired as a new accountant for Bake-Me-Some-Bread, Inc. They have asked you to calculate the company's Manufacturing Overhead Rate. You are given the following data from the accounting...
-
INSTRUCTION: ANSWER ALL QUESTIONS. QUESTION 1 (30 MARKS) Home Perfect Company LTD was incorporated 5 years ago. This company sells home and office furniture and decoration products, catering the...
-
Given a = 1 3 . 4 9 \ pm 0 . 0 6 cm , b = 6 . 1 \ pm 0 . 5 cm . find the um ( the absolute uncertainty in m ) , where m is calculated with the following equation m = 2 ab 3
-
Find the probability of not surviving a car accident, given that the driver wore a seat belt.
-
Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:...
-
At its most base level, product packaging serves to protect the product inside. Packaging must keep the product safe during shipment between the manufacturing facility and the retailer and must...
-
Analyze each of the four transactions Ernie's Electronics had with Bert's Bargain House from the perspective of Ernie's Electronics. Required: Select the section of the statement of cash flows in...
-
Hello, Kindly help me with the following question. Why does the present value of a cash flow stream, and the associated assets, fluctuate with the level of interest rates in its markets. Thanks!
-
A condenser (heat exchanger) brings 1 kg/s water flow at 10 kPa quality 95% to saturated liquid at 10 kPa, as shown in Fig. P4.91. The cooling is done by lake water at 20C that returns to the lake at...
-
While waiting in a long line for service (e.g., to use an ATM or at the post office), at some point you may decide to leave the queue. The Journal of Consumer Research (Nov. 2003) published a study...
-
Determine which pairs of the following models are "nested" models. For each pair of nested models, identify the complete and reduced model. a. E(y) = 0 + 1x1 + 2x2 b. E(y) = 0 + 1x1 c. E(y) = 0 + 1x1...
-
Write a regression model relating the mean value of y to a qualitative independent variable that can assume two levels. Interpret all the terms in the model.
-
What is the likely effect of international stock exchange listing status on the voluntary disclosures of MNEs? :
-
Discuss the kinds of information you would expect to see in the corporate review, the operations review, and the financial review sections of an MNEs directors report.
-
Discuss the relevance to financial analysts and investors of additional disclosures by MNEs with regard to corporate strategy and related issues.
Study smarter with the SolutionInn App