Suppose the returns on bonds and T-bills are normally distributed. Based on the historical record in Table 10.2, use the NORMDIST function in Microsoft 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 bonds will be greater than 10 percent? Less than 0 percent?

Greater than 10 percent	%
Less than 0 percent	%

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

Greater than 10 percent	%
Less than 0 percent	%

c-1. In 1979, the return on bonds was 2.83 percent. How likely is it that a return this low will recur at some point in the future?

Probability %

c-2. T-bills had a return of 11.01 percent in this same year. How likely is it that a return on T-bills this high will recur at some point in the future?

Probability %