Question

Company Ticker	Years to Maturity	Yield
HSBC	10.75	2.720		mean	14.9000
GS	8.00	7.482		sd	7.881697396
C	21.50	5.848		n	40
MS	13.50	1.260		t crit
C	18.50	7.326		lower limit
TOTAL	20.50	0.848		upper limit
MS	22.25	5.385
WFC	3.00	6.310		mean	4.1867
TOTAL	26.25	7.140		sd	1.986339362
TOTAL	21.50	1.328		n
BAC	13.75	6.918		t crit
RABOBK	3.75	6.166		lower limit
GS	21.50	5.119		upper limit
AXP	2.75	3.746
MTNA	19.50	3.857
MTNA	13.50	3.528
JPM	13.25	5.114
GE	21.75	0.843
LNC	27.50	5.307
BAC	2.50	3.264
FCX	11.50	1.148
GS	21.00	7.128
RABOBK	20.00	3.773
GE	28.00	3.295
HCN	2.50	4.734
GE	14.25	4.086
VOD	19.50	1.887
NEM	10.75	3.573
GE	16.75	3.836
C	3.00	6.017
SHBASS	8.00	3.516
PAA	16.25	3.080
GS	25.00	1.984
TOTAL	6.50	4.875
MS	13.25	4.367
WFC	8.50	2.544
AIG	26.50	6.747
BAC	15.50	6.747
MS	21.75	2.754
T	2.00	1.868

A sample containing years to maturity and yield for 40 corporate bonds is contained in the Excel Online file above. Construct a spreadsheet to answer the following questions.

a. What is the sample mean years to maturity for corporate bonds and what is the sample standard deviation?

Mean	(to 4 decimals)
Standard deviation	(to 4 decimals)

b. Develop a 95% confidence interval for the population mean years to maturity. Please round the answer to four decimal places.

(, ) years

c. What is the sample mean yield on corporate bonds and what is the sample standard deviation?

Mean	(to 4 decimals)
Standard deviation	(to 4 decimals)

d. Develop a 95% confidence interval for the population mean yield on corporate bonds. Please round the answer to four decimal places.

(, ) %

Answer 1

14.9000	mean Years to Maturity
7.8817	std. dev.
1.24621	std. error
40	n
39	df
12.3793	confidence interval 95.% lower
17.4207	confidence interval 95.% upper
2.52069	margin of error

(a)

Mean	14.9000
Standard deviation	7.8817

(b) (12.3793, 17.4207) years

4.1867	mean Yield
1.9863	std. dev.
0.314068	std. error
40	n
39	df
3.5514	confidence interval 95.% lower
4.8220	confidence interval 95.% upper
0.635262	margin of error

(c)

Mean	4.1867
Standard deviation	1.9863

(d) (3.5514, 4.8220) %