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Company Ticker Years Yield GE 1.00 0.867 MS 1.10 1.716 WFC 1.35 0.897 TOTAL 1.75 1.378 TOTAL 3.25 1.748 GS 3.75 3.558 MS 4.00 4.413

Company Ticker Years Yield GE 1.00 0.867 MS 1.10 1.716 WFC 1.35 0.897 TOTAL 1.75 1.378 TOTAL 3.25 1.748 GS 3.75 3.558 MS 4.00 4.413 JPM 4.25 2.31 C 4.75 3.332 RABOBK 4.75 2.805 TOTAL 5.00 2.069 MS 5.00 4.739 AXP 5.00 2.181 MTNA 5.00 4.366 BAC 5.00 3.699 VOD 5.00 1.855 SHBASS 5.00 2.861 AIG 5.00 3.452 HCN 7.00 4.184 MS 9.25 5.798 GS 9.25 5.365 GE 9.50 3.778 GS 9.75 5.367 C 9.75 4.414 BAC 9.75 4.949 RABOBK 9.75 4.203 WFC 10.00 3.682 TOTAL 10.00 3.27 MTNA 10.00 6.046 LNC 10.00 4.163 FCX 10.00 4.03 NEM 10.00 3.866 PAA 10.25 3.856 HSBC 12.00 4.079 GS 25.50 6.913 C 25.75 8.204 GE 26.00 5.13 GE 26.75 5.138 T 28.50 4.93 BAC 29.75 5.903

Develop an estimated regression equation with years to maturity and as the independent variables (to decimals). Enter negative values as negative numbers.

What is the value of the coefficient of determination? Note: Report between 0 and 1.

(to decimals)

What is the value of the test statistic?

(to decimals)

What is the -value? If your answer is zero enter "0".

(to decimals)

c. As an alternative to fitting a second-order model, fit a model using the natural logarithm of as the independent variable; that is, (to decimals).

What is the value of the coefficient of determination? Note: Report between and . (to decimals)

What is the value of the test statistic? (to decimals)

What is the -value? If your answer is zero enter "". (to decimals)

Does estimated regression using natural logarithm of provide a better fit than estimated regression equation developed in part (b)? Explain. - Select your answer -Yes, it doesNo, it does notItem 14 , because for the logarithmic model - Select your answer -is is notItem 15 higher than for the second-order model.

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