Answer:
The yield to maturity is 6.3974%
Step-by-step explanation:
The computation of the yield to maturity is as follows
Given that
NPER = 18 × 2 = 36
PMT = $1,035.25 × 6.50% ÷ 2 = $33.65
PV = $1,035.25
FV = $1,000
The formula is shown below:
=RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
AFter applying the above formula, the yield to maturity is
= 3.1987% × 2
= 6.3974%
Hence, the yield to maturity is 6.3974%
Answer:
The expected number of times is 4.
Step-by-step explanation:
Looking at the question, we see that this follows a geometric distribution because it is asking for the expected number of trials hat will bring about the FIRST SUCCESS. The probability of success is
Since it is a geometric distribution, we know that the expected value of a random variable X, E(X) that follows a geometric distribution is given as:
E(X) = 1/p where p is the probability of success.
Therefore, the expected number of times will be
E(X) = 1/(1/p) = 1/(1/4) = 4.
Hence, the expected number of times is 4.