Monica has a $1000 bond with a 5.5% coupon. Monica purchased this bond for $1025. What is the yield of this new bond?

Mathematics

2 answers:

sashaice [31]3 years ago

8 0

Answer: the answer is 5.4% APEX

arsen [322]3 years ago

6 0

Answer:

Annual return on the bond is 1000*0.055 = $55 per year

Yield = return/price = 55/1025 ≈ 0.0537 ≈ 5.4%

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A research team at Cornell University conducted a study showing that approximately 10% of all businessmen who wear ties wear the

LenKa [72]

Answer:

a) The probability that at least 5 ties are too tight is P=0.0432.

b) The probability that at most 12 ties are too tight is P=1.

Step-by-step explanation:

In this problem, we could represent the proabilities of this events with the Binomial distirbution, with parameter p=0.1 and sample size n=20.

a) We can express the probability that at least 5 ties are too tight as:

$P(x\geq5)=1-\sum\limits^4_{k=0} {\frac{n!}{k!(n-k)!} p^k(1-p)^{n-k}}\\\\P(x\geq5)=1-(0.1216+0.2702+0.2852+0.1901+0.0898)\\\\P(x\geq5)=1-0.9568=0.0432$

The probability that at least 5 ties are too tight is P=0.0432.

a) We can express the probability that at most 12 ties are too tight as:

$P(x\leq 12)=\sum\limits^{12}_{k=0} {\frac{n!}{k!(n-k)!} p^k(1-p)^{n-k}}\\\\P(x\leq 12)=0.1216+0.2702+0.2852+0.1901+0.0898+0.0319+0.0089+0.0020+0.0004+0.0001+0.0000+0.0000+0.0000\\\\P(x\leq 12)=1$