Question 1.110

1.110 Another look at T-bill rates.

tbill

Refer to Example 1.12 with the histogram in Figure 1.6 (page 13), Example 1.20 with the time plot in Figure 1.12 (page 20), and Example 1.41 with the normal quantile plot in Figure 1.29 (page 53). These examples tells us something about the distribution T-bill rates and how they vary over time. For this exercise, we will focus on very small rates.

  1. How do the very small rates appear in each of these plots?
  2. Make a histogram that improves upon Figure 1.6 in terms of focusing on these small rates.