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A sample containing years to maturity and yield (%) for 40 corporate bonds is contained in the data file named CorporateBonds. (a) Develop an estimated
A sample containing years to maturity and yield (%) for 40 corporate bonds is contained in the data file named CorporateBonds.
(a)
Develop an estimated regression equation with x = years to maturity and
x2 as the independent variables. (Round your numerical values to two decimal places.)
=
(b) As an alternative to fitting a second-order model, fit a model using the natural logarithm of years to maturity as the independent variable; that is,
= b0 + b1 ln(x). (Round your numerical values to two decimal places.)
=
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