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If the Market Rate of Interest on the Day That

question 31

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If the market rate of interest on the day that bonds are issued is lower than the face rate of interest,the bonds will sell at a discount.


Definitions:

P(B)

P(B) denotes the probability of an event B occurring in the context of probability theory and statistics.

Mutually Exclusive

Describes two events that cannot occur at the same time. The occurrence of one event means the other cannot occur.

Independent Events

Two or more events where the occurrence of one event does not affect the probability of the other events occurring.

Dependent Events

Events whose occurrence or outcome is influenced by another event happening.

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