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Thanks And have a great day Investment analysts generally believe the interest rate on bonds is inversely related to the prime interest rate for loans;

Thanks And have a great day

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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. Use the following data to construct a 99% confidence interval for the average bond rate for a prime interest rate of 10%. Discuss the meaning of this confidence interval. Bond Rate Prime Interest Rate 5% 16% 12 6 9 Co 14 7 WA (Do not round the intermediate values. ) S E()10) S (Round your answers to 4 decimal places.) If the prime interest rate is 10%, we are 99% confident that the average bond rate is between % and %. (Round your answers to 2 decimal places.)

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