A sample containing years to maturity and yield (%) for 40 corporate bonds is contained in the

Question:

A sample containing years to and yield (%) for 40 corporate bonds is contained in the data file named CorporateBonds (Barron's, April 2, 2012).
a. Develop a scatter diagram of the data using x = years to as the independent variable. Does a simple linear regression model appear to be appropriate?
b. Develop an estimated regression equation with x = years to and x2 as the independent variables.
c. As an alternative to fitting a second-order model, fit a model using the natural logarithm of price as the independent variable; that is, = b0 + b1ln(x). Does the estimated regression using the natural logarithm of x provide a better fit than the estimated regression developed in part (b)? Explain.
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...