Richard Has Been Given a 7-Question Multiple-Choice Quiz in His

question 22

Multiple Choice

Richard has been given a 7-question multiple-choice quiz in his history class. Each question has four answers, of which only one is correct. Since Richard has not attended the class recently, he doesn't know any of the answers. Assuming that Richard guesses on all 7 questions, find the probability that he will answer all questions incorrectly. Round your answer to the nearest thousandth.

• A)0.750
• B)0.500
• C)0.540
• D)0.133
• E)0.857

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Premium

An amount paid that is above the standard or nominal cost, often for insurance, superior goods, or to designate a higher level of service or coverage.

Coupon Rate

The interest rate stated on a bond when issued, which represents the amount of interest paid to bondholders annually.

Interest Rates

The percentage of a sum of money charged for its use, determining the cost of borrowing or the return on savings.

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The market price at which a bond is currently trading. This price can fluctuate based on interest rates, the bond's credit rating, and other factors.