Given a Linear Time Series Trend Ŷ = 5

question 122

Multiple Choice

Given a linear time series trend Ŷ = 5.2 + 3.1t, what is the forecast for 2010 if the time series started in 2003?

• A) 23.8
• B) 26.9
• C) 30.0
• D) 21.7

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, set by the issuing company at the time of issue.

Coupon Bond

A debt security issued by corporations or governments that pays periodic interest payments based on a fixed interest rate until the bond reaches its maturity date, at which point the principal is repaid.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match the market value.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, accounting for its current market price, face value, interest rate, and time to maturity.