The following table shows information about bonds issued by governments and companies in Canada, sorted by increasing maturity. (Source: Globe and Mail, retrieved 12 August, 2010, HYPERLINK "http://www.globeinvestor.com/servlet/Page/document/v5/data/bonds/" http://www.globeinvestor.com/servlet/Page/document/v5/data/bonds/). Does this information support the theory that less risky bonds yield lower returns? Explain your answer.
Definitions:
Parametric Techniques
Statistical methods based on assumptions about the distribution of the underlying population from which the sample data are drawn.
Confidence Interval
A range of values, derived from statistical analysis, that is likely to contain the value of an unknown parameter with a specified level of confidence.
Null Hypothesis
A theory that assumes there is no statistical significance in a set of given observations, with the aim of testing the validity of this assumption.
Student-t
A probability distribution used in statistical science, particularly in scenarios with small sample sizes or unknown variances.
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