Questions: Hypothesis Testing.

1. Do high yield ("junk") bond returns beat typical corporate bond returns?

2. Are high yield bond returns' variances greater than that of corporate bonds in general?

Use the seven steps presented in this module to set up an experiment to answer the questions. Suggested data are the various Bank of America Merrill Lynch Total Return bond indexes that can be found on FRED: https://fred.stlouisfed.org/. If you find other data sources you like better, feel free to use them.

Using the data, set up and conduct the experiments and report your results. Make sure to describe how you did each of the seven steps.