Suppose the returns on long-term corporate bonds and T-bills are normally distributed. Assume for a certain time period, long-term corporate bonds had an average return of 6.7 percent and a standard deviation of 10 percent. For the same period, T-bills had an average return of 5.2 percent and a standard deviation of 4.2 percent. Use the NORMDIST function in Excel to answer the following questions:

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

Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.

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

Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.

In one year, the return on long-term corporate bonds was 5.3 percent. How likely is it that such a low return will recur at some point in the future? T-bills had a return of 11.72 percent in this same year. How likely is it that such a high return on T-bills will recur at some point in the future?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.