Use Exponential Smoothing, with W = 0 $$\begin{array} { | l | l | } \hline t & y _ { t } \\\hline 1 & 20 \\2 & 16 \\3 & 24 \\4 & 25 \\5 & 22 \\6 & 21 \\\hline\end{array}$$

question 97

Essay

Use exponential smoothing, with w = 0.23 to forecast the next value of the time series below. $$\begin{array} { | l | l | } \hline t & y _ { t } \\\hline 1 & 20 \\2 & 16 \\3 & 24 \\4 & 25 \\5 & 22 \\6 & 21 \\\hline\end{array}$$

---

Definitions:

Yield To Maturity

The total return expected on a bond if it is held until the date it matures, including both interest payments and the difference between the bond's current market price and its face value.

Semi-Annually

Occurring or calculated twice a year, typically every six months.

Face Value

The nominal or original value stated on a financial instrument, such as a bond or stock certificate, not necessarily its current market value.

Coupon Rate

An annual percentage rate that reflects the interest paid on a bond relative to its face value.