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Suppose the returns on long-term corporate bonds and T-bills are normally distributed. Based on the values below answer the following questions: a. What is the
Suppose the returns on long-term corporate bonds and T-bills are normally distributed. Based on the values below answer the following questions: a. 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? 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? c. In 1979, the return on long-term corporate bonds was 2.76 percent. How likely is it that such a low return will recur at some point in the future? T-bills had a return of 10.56 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? Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel functions to answer this
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