Suppose the returns on long-term corporate bonds and T-bills are normally distributed. Based on the historical record, use the NORMDIST function in Excel® to 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 1980, the return on long-term government bonds was −3.95 percent. How likely is it that such a low return will recur at some point in the future? T-bills had a return of 11.24 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?