Provide an Appropriate Response

question 97

Multiple Choice

Provide an appropriate response.
-Which of the following are examples of independent events?

• A)Two people in the same family falling ill in the same week
• B)Two laughs by different people watching the same movie in a theater
• C)Two consecutive wins by a football team
• D)Two archeological discoveries at different locations, at the same time

---

Definitions:

Bond Value

This refers to the present value of a bond's future interest payments plus the face value of the bond when it matures, essentially the price at which a bond is traded.

Credit Default Swaps

Financial derivative contracts that transfer the credit exposure of fixed income products between parties, used as a form of insurance against default on loans or bonds.

Interest Rate Risk

Interest rate risk is the potential for investment losses due to fluctuations in interest rates, affecting the value of fixed-income securities inversely.

Protection Sellers

Protection sellers in a financial context typically engage in credit derivatives markets, selling credit protection to hedge against the risk of default on underlying credit assets.