The Mean and Standard Deviation of a Normally Distributed Random

question 28

True/False

The mean and standard deviation of a normally distributed random variable that has been standardised are one and zero, respectively.

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Definitions:

Yield to Maturity

The total return anticipated on a bond if it is held until it matures, encompassing both interest payments and the appreciation or depreciation of the original investment.

Face Value

The face value or amount in dollars indicated on a financial security, such as a bond or note, which is the total that will be paid out when it matures.

Yield to Maturity

The expected overall yield of a bond, assuming it is retained until its maturity date, comprising of both interest earnings and profits from capital appreciation.

Coupon Rate

Yearly interest percentage on a bond, calculated against its nominal value.