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  3. suppose the returns on long-term government bonds

Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have...

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Accounting

Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6 percent and a standard deviation of 9.6 percent.

What is the probability that your return on these bonds will be less than 13.2 percent in a given year? Use the NORMDIST function in Excel to answer this question.

Probability %

What range of returns would you expect to see 95 percent of the time?

Expected range of returns % to %

What range would you expect to see 99 percent of the time?

Expected range of returns % to %

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