The daily yield changes are assumed to be normally distributed, with the mean yield change estimated to be 0.015%, and with a standard deviation of 2.5%.

What is the maximum yield change expected if a 90 percent confidence (one-tailed) limit is used? In other words, what is the threshold yield change that we have confidence that the realized yield change will be smaller than this threshold for 90% of the chances?

Tips: For a Standard Normal Distribution, we have:

z = 2.576 for cumulative probability of 0.995

z = 2.326 for cumulative probability of 0.990

z = 1.960 for cumulative probability of 0.975

z = 1.645 for cumulative probability of 0.950

z = 1.282 for cumulative probability of 0.900

	A.	3.22%.
	B.	20.0%.
	C.	33.0%.
	D.	39.2%.
	E.	46.6%.