Question: 28. A sample containing years to maturity and yield (%) for 40 corporate bonds is contained in the data file named CorporateBonds (Barrons, April 2,

28. A sample containing years to maturity and yield (%) for 40 corporate bonds is contained in the data file named CorporateBonds (Barrons, April 2, 2012).

a. Develop a scatter diagram of the data using x = years to maturity as the independent variable. Does a simple linear regression model appear to be appropriate?

b. Develop an estimated regression equation with x = years to maturity and x 2 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, y^ = b 0 + b 1 ln(x). Does the estimated regression using the natural logarithm of x provide a better fit than the estimated regression developed in part (b)? Explain.

Is no other aditional information the problem is coming from the book as it is.

Can you please show the work . Thank you.

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