Consider the following regression result is1- i4: = -.08 - .05((ia-)/3) (2.3) (1.4) Where as usual int is the YTM on an n period bond at timet and numbers in brackets below the equation are t-ratios. Discuss these results. What do they say? Are they typical in the literature?

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Consider the following regression result
is- i4 = -.08 - .05((ia- i)/3)
(2.3) (1.4)
Where as usual int is the YTM on an n period bond at time t and numbers in brackets below the
equation are t-ratios. Discuss these results. What do they say? Are they typical in the literature?
Transcribed Image Text:Consider the following regression result is- i4 = -.08 - .05((ia- i)/3) (2.3) (1.4) Where as usual int is the YTM on an n period bond at time t and numbers in brackets below the equation are t-ratios. Discuss these results. What do they say? Are they typical in the literature?
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