There Is a 40% Chance of Rain Today and a 52

question 214

Multiple Choice

There is a 40% chance of rain today and a 52% chance of rain tomorrow. Assuming that the event that it rains today is independent of the event that it rains tomorrow, what is the probability that there will be no rain today or tomorrow Please round the answer to two decimal places. ?

• A)0.30
• B) 0.18
• C) 0.29
• D) 0.31
• E) 0.19

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Definitions:

Market Interest Rate

The prevailing rate at which interest is charged on loans and bonds in the broader financial market.

Bond Yield

The return an investor realizes on a bond, calculated by the coupon payments relative to the market price of the bond.

Face Value

The nominal or dollar value stated on a financial instrument, such as a bond or stock, representing its worth at issuance or maturity.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.