No... it is not a "mad dog". It is guided much of the initial way.
EDIT: At these ranges, at the altitude of the F-15C (~10,000m) the clean (no ECM) Bandit is just BEGGING to be shot out of the sky. BEGGING for it!
Ironically in FC3/DCSW, this shot would never work properly... the 120 would turn to a stone after the direction change after the loft.