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Elden [556K]
4 years ago
9

An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 10 percent annual coupon. Bond L matu

res in 15 years, while Bond S matures in 1 year. What will the value of each bond be if the going interest rate is 5 percent, 8 percent, and 12 percent?
Mathematics
1 answer:
Mars2501 [29]4 years ago
4 0

Answer:

two bonds in his portfolio that have a face value of $1000 and pay an 11% annual coupon. Bond L matures in 12 years, while Bond S matures in 1 year. a. What will the value of each bond be if the going interest rate is 6%, 8%, and 12%? An investor has two bonds in his portfolio that have a face value of $1,000 and pay

Step-by-step explanation:

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The quality-assurance program for a certain adhesive formulation process involves measuring how well the adhesive sticks a piece
Svetach [21]

Answer:

A) P ( X ≤ 160 ) = 0

B) Unusually small

C) process was no longer functioning correctly

D) P ( X ≥ 203 ) = 0.3821

E) Not unusually large

F) No-Evidence

G) P ( X ≤ 195 ) = 0.3085

H) Not unusually small

I) No evidence

Step-by-step explanation:

Given:-

- The random variable (X) denotes the adhesive strength is normally distributed with mean u = 200 N and standard deviation s.d = 10 N.

                            X ~ N ( 200 , 10^2 )

Solution:-

A) Find P(X ≤ 160), under the assumption that the process is functioning correctly.

- Determine the Z-score value:

                      Z-score = ( X - u ) / s.d

                                    = ( 160 - 200 ) / 10

                                    = -4

- Use the standardized z-table to determine the probability:

                      P ( X ≤ 160 ) = P ( Z ≤ -4 )

                                           = 0

- Assuming the process is functioning properly then the adhesive strength of X = 160 N would be considered unusually small since the probability of occurrence is approximately 0.

- If we were to observe an adhesive strength process that gives us the value of 160 N can imply that the process is not functioning properly as its outside the 3 standard deviations from the mean value. ( Conclusive Evidence )

D) Find P(X ≥ 203), under the assumption that the process is functioning correctly.

- Determine the Z-score value:

                      Z-score = ( X - u ) / s.d

                                    = ( 203 - 200 ) / 10

                                    = 0.3

- Use the standardized z-table to determine the probability:

                      P ( X ≥ 203 ) = P ( Z ≥ 0.3 )

                                           = 0.3821

- Assuming the process is functioning properly then the adhesive strength of X = 203 N would be not be considered unusually small since the probability of occurrence is in the heart of the bell curve.

- If we were to observe an adhesive strength process that gives us the value of 203 N can imply that the process is functioning properly as its within 1 standard deviation from the mean value. ( No evidence )

G) Find P(X ≤ 195), under the assumption that the process is functioning correctly.

- Determine the Z-score value:

                      Z-score = ( X - u ) / s.d

                                    = ( 195 - 200 ) / 10

                                    = -0.5

- Use the standardized z-table to determine the probability:

                      P ( X ≤ 195 ) = P ( Z ≤ -0.5 )

                                           = 0.3085

- Assuming the process is functioning properly then the adhesive strength of X = 195 N would be not be considered unusually small since the probability of occurrence is in the heart of the bell curve.

- If we were to observe an adhesive strength process that gives us the value of 195 N can imply that the process is functioning properly as its within 1 standard deviation from the mean value. ( No evidence )

5 0
3 years ago
What are three kinds of insurance besides life and auto?
lina2011 [118]
Malpractice, Liability, Fire, and Homeowners' insurance are all different kinds of insurance besides Life and Automobile.
8 0
4 years ago
Read 2 more answers
A conical perfume bottle has a radius of 3.7 centimeters and a height of 5.4 centimeters. Using 3.14 for , approximately how muc
lianna [129]

Answer: 41.80 cubic cubic centimeters of perfume

4 0
3 years ago
Part A: Find the LCM of 8 and 9. Show your work.
enot [183]
A: 8*9= 72 or  72 because it is the lowest multiple of 8 and 9
B: euclidean theorem (35,63) (35,28) (7,28) (7,0) gcf= 7 or  7 because 7 is the biggest number that goes into both numbers.
C: 7(5+9) or  35 is a factored into 7 and 5 and 63 is factored into 7 and 9 and 9 is factored into 3 and 3
7 0
3 years ago
An interger between -5 and -6
ivolga24 [154]

Answer:

None!

Step-by-step explanation:

First off, what is an integer? An integer is a number that is not a fraction or a whole number but it can be negative or positive.

-5 and -6 are both integers and they are both consecutive integers meaning that they are following one another. So they is no integer between -5 and -6.

4 0
2 years ago
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