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:

Somatic Nervous System

Part of the peripheral nervous system that handles voluntary control of body movements through control of skeletal muscles.

Autonomic Nervous System

The part of the nervous system responsible for control of the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Parasympathetic Nervous System

A branch of the autonomic nervous system responsible for conserving energy and promoting 'rest and digest' functions.

Central Nervous System

The principal part of the nervous system comprising the brain and spinal cord, responsible for processing information and controlling responses.