What is the probability that your return on these bonds

Assignment Help Financial Management

Reference no: EM131901832

Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 5.7 percent and a standard deviation of 9.4 percent.

What is the probability that your return on these bonds will be less than −3.7 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Probability %

What range of returns would you expect to see 68 percent of the time? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected range of returns % to %

What range would you expect to see 95 percent of the time? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected range of returns % to %

Reference no: EM131901832

Questions Cloud

Entrepreneurial talent in the market : What is the total amount of final goods and service that firms in a country plan to produce, depending on the labor, capital, technology, natural resources

How would you use what you have learned concerning supply : How would you use what you have learned concerning Supply and Demand to explain these trends?

Explain how an i-type load instruction would execute : Explain how I-type load instruction would execute in this pipelined implementation. Show clearly that the result is written back in proper Destination Register.

Is-lm function and cob-duoglas production function : Use the real money balance market, the IS-LM function and Cob-Duoglas production function. Will this policy have any effect on prices

What is the probability that your return on these bonds : What is the probability that your return on these bonds will be less than -3.7 percent in a given year?

Journalize the entries record Issuance of bends on April : Journalize the entries record Issuance of bends on April 1, 2016. and First interest payment on October 1, 2026, and amortization of bond premium for six month.

Biggest macroeconomic policy concerns : You will discuss how you are affected by unemployment, one of the country's biggest macroeconomic policy concerns.

Founded the hospital for toys and puppets : Willy Wonka just founded the Hospital for Toys and Puppets. The hospital is an independent non-profit entity.

Calculate the nominal gdp in the current year : Calculate the nominal GDP in the current year and in the base year. What is the percentage increase since the base year?

User Account

All Pages