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Bond Interest Rates and Excel Formulas

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Corporate triple A bond interest rates for 12 consecutive months follow.

Month Bond Interest
1 9.5
2 9.3
3 9.4
4 9.6
5 9.8
6 9.7
7 9.8
8 10.5
9 9.9
10 9.7
11 9.6
12 9.6

a. Develop three-month and four-month moving averages for this time series. Does the three-month or four-month moving average provide the better forecast? Explain.

b. What is the moving average forecast for the next month?

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Solution Summary

This solution shows how to calculate moving averages for a corporation's triple A bond interest rates and how to calculate the moving average for the month after the given sequence.

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