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U.S. Treasury Bonds Returns Analysis

U.S. Treasury bonds had a critical return of -6.30%, an average return of 6.20%, and a standard deviation of 12.50% over the period shown in the textbook chart. The 95% confidence interval for returns was between -18.80% and 31.20% and the 99% confidence interval was between -31.30% and 43.70%.

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Ivy P. Nguyen
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25 views4 pages

U.S. Treasury Bonds Returns Analysis

U.S. Treasury bonds had a critical return of -6.30%, an average return of 6.20%, and a standard deviation of 12.50% over the period shown in the textbook chart. The 95% confidence interval for returns was between -18.80% and 31.20% and the 99% confidence interval was between -31.30% and 43.70%.

Uploaded by

Ivy P. Nguyen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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U.

S Treasury Bonds
Critical return -6.30% (Chart in textbook)
Average return 6.20%
Standard deviation 12.50%

Output area

Probability less than -6.30% 0.1586552539


Range Lower return Upper return
95% -18.80% 31.20%
99% -31.30% 43.70%
Year
1 -9%
2 17%
3 9%
4 14%
5 -4%

Arithmetic return 5.40%


Geometric return 4.90%
Input Area
Year Yearly Returns Current Bal
0 1000
1 (0.09) 910.00
2 0.17 2,234.70
3 0.09 2,943.58
4 0.14 4,495.68
5 (0.04) 5,275.85

Output Area
Arithmetic mean 5.40%
Geometric mean 4.90%
Dollar-weighted return -530810%
The investor deposits an additional $1,000 every subsequent year
Cash Flow
1000
1,910.00
3,234.70
3,943.58
5,495.68

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