Suppose the average return on FTSE TMX Canada long-term bonds is 6.50% and the standard deviation is 8.50% and the average return and standard deviation on T-bills are 3.70% and 3.00%, respectively. Further assume that the returns are normally distributed. Use the NORMDIST function in Excel to answer the following questions. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

a. What is the probability that in any given year, the return on long-term corporate bonds will be greater than 10%? Less than 0%?

Greater than 10%	%
Less than 0%	%

b. What is the probability that in any given year, the return on T-bills will be greater than 10%? Less than 0%?

Greater than 10%	%
Less than 0%	%

c-1 In 1981, the return on FTSE TMX Canada long-term bonds was -4.24%. How likely is it that such a low return will recur at some point in the future?

Probability %

c-2 T-bills had a return of 9.50% in this same year. How likely is it that such a high return on T-bills will recur at some point in the future?

Probability %