Consider the yields (as an interest rate, in percent per year) of municipal bonds, as shown in Table 3.8.1. 

a. Construct a histogram of this data set. 

b. Based on the histogram, what values appear to be typical for this group of tax-exempt bonds? 

c. Describe the shape of the distribution. 

Table 3.8.1

Transcribed Image Text:

TABLE 3.8.1 Yields of Municipal Bonds Yield Issue (%) ALABAMA INCENTIVES FING AUTH S SPL 4.280 OBLIG REFUNDING ALAMEDA CALIF PUB FING AUTH RE REV BDS 4.308 AUGUSTA ME PENSION OBLIG REF BDS 3.153 BIG HORN CNTY MONT HIGH SCH DI 4.058 QUALIFIED SCH CONST BLOOM & CARROLL OHIO LOC SCH D SCH 3.946 IMPT BDS CALIFORNIA QUALIFIED SCH BD JT 4.358 GO BDS CENTRAL VALLEY SUPPORT SVCS JT GO 4.249 REV BDS CENTRAL VALLEY SUPPORT SVCS JT GO 4.564 REV BDS CHRISTIAN CNTY MO REORG SCH DI GO BDS 3.610 CLARK CNTY MO REORG SCH DIST N TAXABLE 3.607 GO BDS DANVILLE VA INDL DEV AUTH HOSP REV BDS 3.427 EAST CHICAGO IND SOLID WASTE D REV BDS 4.798 HARRIS CNTY TEX HEALTH FACS DE REV BDS 3.110 JACKSON MISS MUN ARPT AUTH ARP REV BDS 4.662 JENKS OKLA GO BDS 2.459 LONG ISLAND PWR AUTH N Y ELEC REV BDS 3.146 MAPLEWOOD RICHMOND HEIGHTS MO 3.758 TAXABLE GO BDS MATAGORDA CNTY TEX NAV DIST NO 3.866 REF REV BDS MATAGORDA CNTY TEX NAV DIST NO 4.114 REF REV BDS METROPOLITAN TRANSN AUTH NYD TAX 3.498 FUND BDS MIDDLESEX CNTY NJ CTFS PARTN REF COPS 2.841 MILLER SD SCH DIST NO 29-4 LTD OBLIG BDS 4.164 M-S-R ENERGY AUTH CALIF GAS RE GAS 3.759 REV BDS M-S-R ENERGY AUTH CALIF GAS RE GAS 3.724 REV BDS M-S-R ENERGY AUTH CALIF GAS RE GAS 3.740 REV BDS NORTHVILLE MICH CHARTER TWP GO BDS 4.465 OREGON CMNTY COLLEGE DISTS LTD TAX 3.877 PENSION OBLIGAT