The Price of a Bond Is Uniformly Distributed Between $80

question 109

Short Answer

The price of a bond is uniformly distributed between $80 and $85.
a.What is the probability that the bond price will be at least $83?
b.What is the probability that the bond price will be between $81 to $90?
c.Determine the expected price of the bond.
d.Compute the standard deviation for the bond price.

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Definitions:

Market Price

The present cost for purchasing or selling an asset or service within a specific market.

Fishery Identification

The process of classifying and recognizing different fish species, important for managing and conserving fish populations.

Location

The specific place or position where something exists or is situated, often specified in terms of geographical coordinates.

Explicit Property Right

A clear and legally enforceable claim or entitlement to own, use, and dispose of an asset or property.