In: Math
DATAfile: CorporateBonds
You may need to use the appropriate appendix table or technology to answer this question.
A sample containing years to maturity and yield for 40 corporate bonds are contained in the data file named CorporateBonds.† (Round your answers to four decimal places.)
Company Ticker |
Years to Maturity |
Yield |
---|---|---|
HSBC | 12.00 | 4.079 |
GS | 9.75 | 5.367 |
C | 4.75 | 3.332 |
MS | 9.25 | 5.798 |
C | 9.75 | 4.414 |
TOTAL | 5.00 | 2.069 |
MS | 5.00 | 4.739 |
WFC | 10.00 | 3.682 |
TOTAL | 10.00 | 3.270 |
TOTAL | 3.25 | 1.748 |
BAC | 9.75 | 4.949 |
RABOBK | 9.75 | 4.203 |
GS | 9.25 | 5.365 |
AXP | 5.00 | 2.181 |
MTNA | 5.00 | 4.366 |
MTNA | 10.00 | 6.046 |
JPM | 4.25 | 2.310 |
GE | 26.00 | 5.130 |
LNC | 10.00 | 4.163 |
BAC | 5.00 | 3.699 |
Company Ticker |
Years to Maturity |
Yield |
---|---|---|
FCX | 10.00 | 4.030 |
GS | 25.50 | 6.913 |
RABOBK | 4.75 | 2.805 |
GE | 26.75 | 5.138 |
HCN | 7.00 | 4.184 |
GE | 9.50 | 3.778 |
VOD | 5.00 | 1.855 |
NEM | 10.00 | 3.866 |
GE | 1.00 | 0.767 |
C | 25.75 | 8.204 |
SHBASS | 5.00 | 2.861 |
PAA | 10.25 | 3.856 |
GS | 3.75 | 3.558 |
TOTAL | 1.75 | 1.378 |
MS | 4.00 | 4.413 |
WFC | 1.25 | 0.797 |
AIG | 5.00 | 3.452 |
BAC | 29.75 | 5.903 |
MS | 1.00 | 1.816 |
T | 28.50 | 4.930 |
(a)
What is the sample mean years to maturity for corporate bonds and what is the sample standard deviation?
x= yrs= yr
(b)
Develop a 95% confidence interval for the population mean years to maturity.
yr to yr
(c)
What is the sample mean yield on corporate bonds and what is the sample standard deviation?
x= % s= %
(d)
Develop a 95% confidence interval for the population mean yield on corporate bonds.
__________ % to % _____________
We have calculated mean and standard deviation using MS Excel. Following is the screenshot:
Answer a)
Sample mean years to maturity for corporate bonds = 9.7063
Sample standard deviation = 7.9805
Answer b)
CI = (7.1536, 12.2589)
95% confidence interval for the population mean years to maturity is 7.1536 yr to 12.2589 yr
Answer c)
Sample mean yield on corporate bonds = 3.8854
Sample standard deviation = 1.6194
Answer d)
CI = (3.3674, 4.4033)
95% confidence interval for the population mean yield on corporate bonds is 3.3674% to 4.4033%