The Odds Against an Event Are 4:10 $\frac { 2 } { 7 }$

question 48

Short Answer

The odds against an event are 4:10. Find the probability that the event will occur. A) $\frac { 2 } { 7 }$

B) $\frac { 2 } { 5 }$

C) $\frac { 5 } { 2 }$

D) $\frac { 5 } { 7 }$

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Definitions:

Zero-Coupon Bond

A zero-coupon bond is a debt security that doesn't pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.

Purchase Price

The amount of money that has been agreed upon to buy an asset, product, or service.

Face Value

The nominal value stated on a financial instrument, such as a bond or stock, representing its legal value at issuance or redemption.

Zero-Coupon Bond

A type of bond that does not pay periodic interest payments and is issued at a discount from its face value.