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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

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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. Prime Bond Rate % Interest Rate % 5 16 12 6 9 8 15 4 7 7 1. Construct a least squares regression line to predict bond rates by the prime interest rate. 2. Is the prime interest rate a significant factor to predict bond rates? Use the T test at 0.05 significance level

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