Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following table of annual mortgage rates and yields on 10-yeat Treasury securities: Year 2000 5.97 2001 10-Year u.s. Treasury Yield (1) 4.99 4.56

image text in transcribed
image text in transcribed
image text in transcribed
Consider the following table of annual mortgage rates and yields on 10-yeat Treasury securities: Year 2000 5.97 2001 10-Year u.s. Treasury Yield (1) 4.99 4.56 4.02 4.27 2002 Mortgage Rate (1) 8.07 7.28 6.67 5.82 5.75 5.52 5.95 6.01 4.27 6.71 2003 2004 2005 2006 2007 2008 2000 2010 2011 2012 2013 2014 2015 2016 2017 2013 4.79 4.58 3.61 3.29 3.14 2.75 1.76 2.38 2.49 7.37 5.62 4.99 4.20 4.38 4.07 3.89 3.75 3.99 4.39 2.10 1.03 2.34 2.89 Required: a. What was the average annual spread on mortgage rates relative to 10 year Treasury securities over the 2000 to 2018 period? b. What was the correlation between annual mortgage rates and Treasury yields over the 2000-2018 period? (Use your financial calculator or the statistical functions in Excel) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Requinilda Required B What was the average annual spread on mortgage rates relative to 10-year Treasury securities over the 2000 to 2018 period? (Do not round intermediate calculations, Enter your answer as a percentage rounded to 2 decimal places (.e. 0.1234 should be entered as 12.34).) Aontage annual spread 1.70 percentage points Required B > a. What was the average annual spread on mortgage rates relative to 10 year Treasury securities over the 2000 to 2018 period? b. What was the correlation between annual mortgage rates and Treasury yields over the 2000-2018 period? (Use your financial calculator or the statistical functions in Excel) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B What was the correlation between annual mortgage rates and Treasury yields over the 2000-2018 period? (Use your financial calculator or the statistical functions in Excel.) (Enter your answer as a percentage rounded to 1 decimal place .0.123 should be entered as 12.3).) Correlation 1.0 perint

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions