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A computer help desk receives new daily customer arrivals according to the following probability distribution: The number of customers that the help desk has the capability to serve per day is based on the following probability distribution:
If the number of arrivals exceeds the # served capability, the customers will receive top priority the next day. The random numbers drawn for a 5-day simulation are as follows:
What will the average number of delays be for the 5 day simulation?
Bond Price
The amount of money an investor pays to purchase a bond and can fluctuate based on interest rates, credit quality, and other factors.
Coupon Rates
The annual interest rate paid by bond issuers to the bondholders, usually fixed throughout the life of the bond.
Price Volatility
A statistical measure of the dispersion of returns for a given security or market index, indicating how much and how quickly the value of an asset changes.
Convexity
A measure of the curvature in the relationship between bond prices and bond yields, indicating how the duration of a bond changes as the interest rate changes.
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