Question: 5. A sample containing years to maturity and yield (%) for 40 corporate bonds is contained in the data file named CorporateBonds (Barron's, April 2,

 5. A sample containing years to maturity and yield (%) for40 corporate bonds is contained in the data file named CorporateBonds (Barron's,April 2, 2012) available on the portal. (13 marks total) a. Use

Excel@ or XLSTAT@ to develop a scatter diagram of the data, usingx = years to maturity as the independent variable. Does a simplelinear regression model appear to be appropriate? (3 marks) b. Develop anestimated regression equation, with x = years to maturity and x2 as

5. A sample containing years to maturity and yield (%) for 40 corporate bonds is contained in the data file named CorporateBonds (Barron's, April 2, 2012) available on the portal. (13 marks total) a. Use Excel@ or XLSTAT@ to 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? (3 marks) b. Develop an estimated regression equation, with x = years to maturity and x2 as the independent variables. (4 marks) c. As an alternative, fit a model using the natural logarithm of years to maturity as the independent variable; that is, > = by + b, In(x). Does the estimated regression using the natural logarithm of x provide a better fit than the estimated regression developed in part (b)? Explain. (6 marks)Company Years Yield Ticker GE 1 0.767 MS 1 1.816 WFC 1.25 0.797 TOTAL 1.75 1.378 TOTAL 3.25 1.748 GS 3.75 3.558 MS 4 4.413 JPM 4.25 2.31 C 4.75 3.332 RABOBK 4.75 2.805 TOTAL 5 2.069 MS 5 4.739 AXP 5 2.181 MTNA 5 4.366BAC 5 3.699 VOD 5 1.855 SHBASS 5 2.861 AIG 5 3.452 HCN 7 4.184 MS 9.25 5.798 GS 9.25 5.365 GE 9.5 3.778 GS 9.75 5.367 C 9.75 4.414 BAC 9.75 4.949 RABOBK 9.75 4.203 WFC 10 3.682 TOTAL 10 3.27 MTNA 10 6.046LNC 10 4.163 FCX 10 4.03 NEM 10 3.866 PAA 10.25 3.856 HSBC 12 4.079 GS 25.5 6.913 C 25.75 8.204 GE 26 5.13 GE 26.75 5.138 T 28.5 4.93 BAC 29.75 5.903

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