What is the probability that your return on these bonds

Assignment Help Financial Management

Reference no: EM132015882

Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.3 percent and a standard deviation of 9 percent.

What is the probability that your return on these bonds will be less than -11.7 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?

Reference no: EM132015882

Questions Cloud

The internal rate of return you will earn on your investment : Suppose you purchase a 20-year, $1,000 treasury bond with a 6% annual coupon ten years ago at par. Today the bond's yield to maturity has risen to 8% (EAR).

Find the amount of that initial withdrawal : Assume you have $800,000 invested in various accounts and expect these investments to earn a nominal annual rate of 6%.

Compute the january balance for hulse in accounts payable : Hulse's sales journal for January shows a total of $110,000 in the selling price column, Compute the January balance for Hulse in Accounts Payable

What would your percentage price return be : What would your percentage price return be? What would the percentage return be if you had used 75 percent margin? 50 percent margin?

What is the probability that your return on these bonds : What is the probability that your return on these bonds will be less than -11.7 percent in a given year?

What is the january balance in the subsidiary account : Pennington Company has a balance in its Accounts Payable control account of $9,250 on January 1, 2014. What is the January balance in the subsidiary account

What is the balance in the account at the end of each : Suppose you receive dollar 500 at the end of each year for the next three years. If the interest rate is 9 percent,what is the present value of these cash flow?

Should you invest in ge and why or why not : Suppose you read in the Wall Street Journal that the price of GE is expected to increase in the future. Should you invest in GE ?

What is the price of the bond when you buy it : If the bond's yield to maturity drops by 1% when you sell it, what is the internal rate of return of your investment?

User Account

All Pages