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Compute the linear correlation coefficient between the two variables and determine whether a linear relation exists.
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Treasury Bond
A long-term government debt security with a fixed interest rate, considered low-risk.
Expectations Theory
A theory in finance that predicts the future interest rates from the yield curve of long-term and short-term government bonds.
Term Structure
The relationship between interest rates or bond yields and different terms or maturities, often depicted in a yield curve.
Forward Rates
Interest rates or financial transaction rates agreed upon now, to be executed at a future date.
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