Question

In: Math

DATAfile: CorporateBonds You may need to use the appropriate appendix table or technology to answer this...

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  % _____________

Solutions

Expert Solution

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%


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