THE ANSWER IS B Show the results of your calculations for the reflection.
Answer:4
Step-by-step explanation:
A zero-coupon bond doesn’t make any payments. Instead, investors purchase the zero-coupon bond for less than its face value, and when the bond matures, they receive the face value.
To figure the price you should pay for a zero-coupon bond, you'll follow these steps:
Divide your required rate of return by 100 to convert it to a decimal.
Add 1 to the required rate of return as a decimal.
Raise the result to the power of the number of years until the bond matures.
Divide the face value of the bond to calculate the price to pay for the zero-coupon bond to achieve your desired rate of return.
First, divide 4 percent by 100 to get 0.04. Second, add 1 to 0.04 to get 1.04. Third, raise 1.04 to the sixth power to get 1.2653. Lastly, divide the face value of $1,000 by 1.2653 to find that the price to pay for the zero-coupon bond is $790,32.
Answer: 1. 0.0256
2. 0.4096
Step-by-step explanation:
Binomial probability formula , to find the probability of getting x successes:
, where n= Total number of trials
p= Probability of getting success in each trial.
Let x be the number of customers will make purchase.
As per given , we have
p= 0.20
n= 4
1. The probability that 3 of the next 4 customers will make a purchase will be:-
![P(x=3)=(4)(0.20)^3(0.80)^{1}\ \ [\because\ ^nC_{n-1}=n]](https://tex.z-dn.net/?f=P%28x%3D3%29%3D%284%29%280.20%29%5E3%280.80%29%5E%7B1%7D%5C%20%5C%20%5B%5Cbecause%5C%20%5EnC_%7Bn-1%7D%3Dn%5D)
Hence, the probability that 3 of the next 4 customers will make a purchase = 0.0256
2. The probability that none of the next 4 customers will make a purchase will be :
![P(x=0)=(1)(0.80)^{4}\ \ [\because\ ^nC_{0}=1]](https://tex.z-dn.net/?f=P%28x%3D0%29%3D%281%29%280.80%29%5E%7B4%7D%5C%20%5C%20%5B%5Cbecause%5C%20%5EnC_%7B0%7D%3D1%5D)
Hence, the probability that none of the next 4 customers will make a purchase= 0.4096
Here are the answers to problem 1..
a) 11
b) 5/36
c) 25 Times because 7 has a probability of 16.667%
d) 25 Times because 10, 11, and 12 have a probability sum of 16.667% ironically...
Hope this helps. :)
