Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.1 percent and a standard deviation of 9.8 percent.

1. What is the approximate probability that your return on these bonds will be less than 3.7 percent in a given year? Use the NORMDIST function in Excel to answer this question.

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

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

Note: A negative answer should be indicated by a minus sign. Enter your answers from lowest to highest. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.

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

Note: A negative answer should be indicated by a minus sign. Enter your answers from lowest to highest. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.

	a. Probability less than -3.70%		%
	b. Expected range of returns		%	to		%
	c. Expected range of returns		%	to		%