A= Accident caused by blue cab B= witnesses told the cab was blue.It is easy and straightforward to have probability of P(A)= 15% and P(B/A) is 85%. Following the law of total probability.<span><span><span>P(D)</span><span>=P(D|H)P(H)+P(D|<span>¯H</span>)P(<span>¯H</span>)</span></span><span> <span>=0.8⋅0.15+0.2⋅0.85=0.29</span></span></span>Therefore I get <span>P(H|D)=41%</span>. Thus, even if the witness said that the cab involved in the accident was Blue, the probability of this being true is only <span>41%</span>.
Answer:
$4,455
Explanation:
The computation of total decrease in earnings (pretax) in Morris Dec. 31, 2021, income statement is given below:-
Interest expense upto 31 Dec 2021 = (Total present value of lease payment - Lease payment on July 1, 2021) × 6% × 6 ÷ 12
= ($58,500 - $7,500) × 6% × 6 ÷ 12
= $51,000 × 6% × 6 ÷ 12
= $1,530
Depreciation expense upto 31 Dec 2021 = Fair value of equipment ÷ Useful life × 6 ÷ 12
= $58,500 ÷ 10 × 6 ÷ 12
= $5,850 × 6 ÷ 12
= $2,925
So, the total decrease in earnings (pretax) in Morris Dec. 31, 2021, income statement = Interest expense upto 31 Dec 2021 + Depreciation expense upto 31 Dec 2021
= $1,530 + $2,925
= $4,455
Answer:
12.39%
Explanation:
in order to determine the realized rate of return we need to calculate the yield to call:
YTC formula = {coupon + [(call price - market price)/n]} / [(call price + market price)/2]
YTC = {$120 + [($1,080 - $1,000)/9]} / [($1,080 + $1,000)/2]
YTC = $128.89 / $1,040 = 0.1239 = 12.39%
In this case, the investor's realized rate of return was actually higher than the expected yield to maturity (YTM = 12% since bonds were sold at face value).
Answer:
$618 dollars
Explanation:
The beginning face value will be our starting position: $600
Then, we have a 2 percent increase over the next three years
this makes for a principal at maturity of:
600 x (1 + 2% x 3 years ) = $618
This makes each coupon return in coins to also increase over time as, they are calcualted based on the adjusted face vale. This method iguarantee the 10% return on the bond regardless of inflation during the period.
She should do C, to find the best way to optimize profits.
