The main problem with your table is that quite a few of the entries in the header row are fairly long. I suggest you break them up across two lines. That way, it's only necessary to change the value of \tabcolsep -- the parameter that governs the amount of intercolumn whitespace -- to 5pt (default value: 6pt) to make the table fit comfortably inside the text block.
Instead of using r for all columns, you may want to use the S column type for the middle five columns, since they contain numbers that should be aligned on the respective decimal markers. You may also want to load the booktabs package and use its line-drawing macros instead of the generic \hline.

\documentclass{article}
\usepackage{booktabs,siunitx,amsmath,caption}
\begin{document}
\begin{table}[ht]
\setlength\tabcolsep{5pt} % default value: 6pt
\caption{Backtesting --- CFM $\alpha=5\%$, $\text{confidence interval} = 95\%$ }
\centering
\begin{tabular}{@{}lSSSSSc@{}}
\toprule
Bond & {Expected} & {Actual} & {Test} & {Critical} & {p-value} & Decision \\
& {Exceedances} & {Exceedances} & {Statistic} & {Value} \\
\midrule
1 & 42.00 & 287.00 & 686.63 & 3.84 & 0.00 & Reject H0 \\
2 & 20.00 & 103.00 & 189.78 & 3.84 & 0.00 & Reject H0 \\
3 & 20.00 & 101.00 & 182.33 & 3.84 & 0.00 & Reject H0 \\
4 & 20.00 & 173.00 & 509.53 & 3.84 & 0.00 & Reject H0 \\
5 & 20.00 & 125.00 & 278.35 & 3.84 & 0.00 & Reject H0 \\
6 & 20.00 & 119.00 & 253.02 & 3.84 & 0.00 & Reject H0 \\
7 & 20.00 & 123.00 & 269.81 & 3.84 & 0.00 & Reject H0 \\
8 & 15.00 & 50.00 & 84.15 & 3.84 & 0.00 & Reject H0 \\
10 & 20.00 & 110.00 & 216.66 & 3.84 & 0.00 & Reject H0 \\
11 & 9.00 & 39.00 & 55.56 & 3.84 & 0.00 & Reject H0 \\
12 & 20.00 & 108.00 & 208.85 & 3.84 & 0.00 & Reject H0 \\
13 & 20.00 & 134.00 & 317.88 & 3.84 & 0.00 & Reject H0 \\
14 & 20.00 & 174.00 & 514.86 & 3.84 & 0.00 & Reject H0 \\
15 & 9.00 & 54.00 & 109.55 & 3.84 & 0.00 & Reject H0 \\
16 & 20.00 & 126.00 & 282.65 & 3.84 & 0.00 & Reject H0 \\
17 & 20.00 & 165.00 & 470.50 & 3.84 & 0.00 & Reject H0 \\
18 & 20.00 & 170.00 & 493.66 & 3.84 & 0.00 & Reject H0 \\
\bottomrule
\end{tabular}
\end{table}
\end{document}
Addendum: the variables "Expected Exceedances" and "Actual Exceedances" are integer-valued, right? If so, one shouldn't show the decimal fractional components of these variables (which, unsurprisingly, are .00 in all cases). Suppressing the display of the zero decimals may be achieved by setting the option zero-decimal-to-integer for columns of type S.

\documentclass{article}
\usepackage{booktabs,siunitx,amsmath,caption}
\setlength\tabcolsep{5pt}
\begin{document}
\hrule
\begin{table}[ht]
\caption{Backtesting --- CFM $\alpha=5\%$, $\text{confidence interval} = 95\%$ }
\centering
\begin{tabular}{@{} l
S[table-format=2.0,zero-decimal-to-integer]
S[table-format=3.0,zero-decimal-to-integer]
S[table-format=3.2]
S[table-format=1.2]
S[table-format=1.2]
c @{}}
\toprule
Bond & {Expected} & {Actual} & {Test} & {Critical} & {p-value} & Decision \\
& {Exceedances} & {Exceedances} & {Statistic} & {Value} \\
\midrule
1 & 42.00 & 287.00 & 686.63 & 3.84 & 0.00 & Reject H0 \\
2 & 20.00 & 103.00 & 189.78 & 3.84 & 0.00 & Reject H0 \\
3 & 20.00 & 101.00 & 182.33 & 3.84 & 0.00 & Reject H0 \\
4 & 20.00 & 173.00 & 509.53 & 3.84 & 0.00 & Reject H0 \\
5 & 20.00 & 125.00 & 278.35 & 3.84 & 0.00 & Reject H0 \\
6 & 20.00 & 119.00 & 253.02 & 3.84 & 0.00 & Reject H0 \\
7 & 20.00 & 123.00 & 269.81 & 3.84 & 0.00 & Reject H0 \\
8 & 15.00 & 50.00 & 84.15 & 3.84 & 0.00 & Reject H0 \\
10 & 20.00 & 110.00 & 216.66 & 3.84 & 0.00 & Reject H0 \\
11 & 9.00 & 39.00 & 55.56 & 3.84 & 0.00 & Reject H0 \\
12 & 20.00 & 108.00 & 208.85 & 3.84 & 0.00 & Reject H0 \\
13 & 20.00 & 134.00 & 317.88 & 3.84 & 0.00 & Reject H0 \\
14 & 20.00 & 174.00 & 514.86 & 3.84 & 0.00 & Reject H0 \\
15 & 9.00 & 54.00 & 109.55 & 3.84 & 0.00 & Reject H0 \\
16 & 20.00 & 126.00 & 282.65 & 3.84 & 0.00 & Reject H0 \\
17 & 20.00 & 165.00 & 470.50 & 3.84 & 0.00 & Reject H0 \\
18 & 20.00 & 170.00 & 493.66 & 3.84 & 0.00 & Reject H0 \\
\bottomrule
\end{tabular}
\end{table}
\end{document}
\usepackage{siunitx}(forScolumns), and modify the start of the table to\begin{tabular}{*{6}{S}c} \hline & \multicolumn{2}{c}{Exceedances} & {Test} & {Critical} & \\ {Bond} & {Expected} & {Actual} & {Statistic} & {Value} & {$p$-Value} & {Decision}\\ \hline– Torbjørn T. Oct 13 '14 at 18:20