value 10.00 points Suppose the returns on long-term corporate bonds are normally distributed. The average annual return for long-term corporate bonds from 1926 to 2007 was 6.2 percent and the standard deviation of those bonds for that period was 8.3 percent. TALE A.11 Cumulative Areas under the Standard Normal Curve 01 00 000 04 0001 000) 005 06 0003 0000 0006 DOS 0006 000 0000 3000 OOO 08 6003 2004 0005 0000 0010 2014 00.20 0027 2010 0012 0010 DON 000 2018 0025 1034 013 0010 0034 0033 0012 0017 0023 DOM 0003 05 DOOD DODE 2006 DO 0011 2016 00:22 000 000 DOS 001 004 0122 DIS 2012 2016 0023 DOI 0041 2011 2015 0021 07 0003 0004 0005 0000 2011 0015 0021 0020 Do 0051 08 0009 0116 150 0192 6340 0307 .09 0002 0003 0005 0007 0010 0014 0019 0026 0036 0040 0064 0084 0110 0143 0029 SCOG 100 000 LEDO 0000 060 0020 0102 00 010 019 0170 0220 0075 000 0120 0166 0104 0136 0174 0222 -22 00) sos 0069 0091 0119 0154 0192 02:50 0314 0073 0006 015 DI 0207 V V 0132 0110 02:17 0274 016) - ICO 26 OSCO SEO 0294 0227 05 OS DS -15 WO 01.29 0400 0505 0610 0749 0001 1075 DO 0715 0721 010 0051 764 0910 O 1151 105 0776 0034 1112 114 15.30 170 2051 0025 0582 0700 0853 1020 1210 13 1660 1922 -1.8 0113 0166 018 0209 101 0375 0465 0571 06 0836 100) 1190 1401 1635 1800 2177 2483 2010 3156 3520 3897 1515 1709 - 0367 0455 0559 0681 0823 OSOS .1970 1379 1611 1067 2140 2451 2776 3120 10 12:30 146 15 . 2236 1814 2010 100 1711 1922 1736 2110 200 -60 3700 2077 REE 3015 3172 3745 4129 2012 3264 21 200 2700 360 - 3707 ADO 3192 1957 E 4166 4013 com GO TOOT LONY LS 4840 SSGO 4344 476 45 2011 0905 6.1 S07 5071 3050 4247 4641 5359 5753 6141 6517 tas I 5675 010 5319 5714 6100 GO Sw 03 SO ow 25 SUOC 2 6095 7204 7291 7611 735 3044 73 3157 70 281 .7190 7517 7224 OR 7073 BE T164 OSBE M M 75 D SO mts 8078 100 1577 3790 A105 A6 1.1 1 W www 1770 MO 352 30 2015 Type here to search O EUR 4286 -0.1 AB01 5190 5596 5087 6368 3.30 4325 4721 5279 5675 .6064 4581 5319 5714 6103 A502 5000 5000 5398 5793 6179 6554 6015 .7257 7580 7881 8159 1413 NE 8549 7088 0.0 0.1 02 0.3 0.4 0.5 0.6 0.7 0.8 0.0 1.0 1.1 12 1.3 1.4 7157 7422 7734 8023 410 4522 4920 50 5478 5871 6255 6528 coas .7324 7642 7939 A212 1461 8686 8888 S066 9222 9357 9474 9573 9656 9726 9783 9830 41 4562 1960 5040 5433 5632 6217 6591 GOSO 7291 -7611 7910 8186 8430 1665 MASO 904 9207 9345 9163 9564 9649 9719 9778 9826 9864 9896 9020 99.40 9955 9966 9075 9982 9987 9991 9093 SOOS 9007 9192 9332 9452 S554 0641 9713 9772 AUS 4443 4840 5160 5557 5048 6331 5700 .7054 .7389 .7704 7995 8264 ASOS 3729 1925 9099 9251 9382 9495 9591 9571 9738 9793 9838 9875 9904 9927 9945 9959 9969 9977 9984 9988 9992 9994 9906 9997 wa 4344 4761 5209 5615 .6026 EAN 6772 7123 7454 7764 8051 3315 8554 8770 .8962 9131 9279 9406 .9515 960e ARRO 5120 5517 5910 6293 .6664 7019 7357 7673 7967 8230 BAS 8700 8907 .9062 9236 9370 9484 9582 9664 9732 9780 9834 9871 9901 9925 9943 .9957 9958 9977 9983 9988 9991 9994 9996 9992 1.6 1.7 1.0 1.9 2.0 2.1 22 8531 8749 8944 9115 9265 9394 9505 9599 9578 9744 9798 9842 9878 9906 9929 9946 7794 3078 83,40 .8577 8790 .8900 9147 .9292 9418 .9525 9616 .9693 9756 9808 9850 9854 9911 9932 9949 9962 9972 9979 9995 30 4247 4641 .5359 .5753 6141 6517 6079 7224 .7549 .7852 8133 8389 8621 .8930 9015 9177 9319 9441 9545 9533 9706 9767 9817 .9857 9890 9916 9936 9952 9964 9974 9981 .9986 .9990 .9993 9995 9997 9990 344 7190 7517 7823 8106 8365 8599 8810 8997 9162 9305 9429 9535 S625 9699 9761 9812 9854 9887 9913 9934 9951 9063 9973 9980 9986 9990 9993 9995 9996 9097 9861 24 2.5 2.6 9898 0922 9941 .9750 9803 9846 9881 .9909 .9931 99.00 9961 9971 9979 9905 9989 9992 9994 9996 9997 0918 9938 9953 9965 20 2.9 9967 9976 9982 9989 9981 9987 9990 0903 9995 9097 1.1 9970 9978 9984 S 9992 9994 9906 9997 9991 9094 9995 .9997 9992 9995 9996 9997 Required: (a)Based on this historical record, what is the approximate probability that your return on these bonds w be less than -3.3 percent in a given year? (Do not round intermediate calculations.) (Click to select) (b)What range of returns would you expect to see 95 percent of the time? (Do not round intermediate calculations.) (Click to select) (c)What range would you expect to see 99 percent of the time? (Do not round intermediate calculations.) (Click to select)
