Solve the Problem Find the Slope of the Line of Best Fit for Time

question 216

Essay

Solve the problem.
-The following data represents the Olympic winning time in Women's 100 m Freestyle. $$\begin{array} { l | l l l l l l l } \text { year } & 1972 & 1976 & 1980 & 1984 & 1988 & 1992 & 1996 \\\hline \text { time } & 58.59 & 55.65 & 54.79 & 55.92 & 54.93 & 54.65 & 54.50\end{array}$$ Find the slope of the line of best fit for the data set and interpret it.

---

Definitions:

Maturity

Is the expiration date of a financial instrument, at which point the principal (or final interest payment) is repaid to the investors.

Coupon Rate

The interest rate per year on a bond, expressed as a fraction of its face value.

Par-Value

The face value of a bond or stock, representing the amount that the issuer agrees to repay at maturity or the nominal value of a share, respectively.

Duration

A measure of the sensitivity of a bond's price to changes in interest rates, essentially a weighted average of the time until cash flows are received.