Provide an Appropriate Response

question 138

Essay

Provide an appropriate response.
-Describe an event whose probability of occurring is 1 and explain what that probability means. Describe an event whose probability of occurring is 0 and explain what that probability means.

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Definitions:

Par Value

The face value of the bond. The payment to the bondholder on the bond’s maturity date.

Ask Price

The lowest price a seller is willing to accept for an asset in the market.

Corporate Bond

A debt security issued by a corporation to raise funding, which offers interest payments to holders until maturity.

Futures Contract

A standardized legal agreement to buy or sell a specific commodity or financial asset at a predetermined price at a specified time in the future.