Use the Venn Diagram Below to Determine the Probability $\mathrm { P } ( \mathrm { A } \cup \mathrm { B } )$

question 124

Multiple Choice

Use the Venn diagram below to determine the probability.
- $\mathrm { P } ( \mathrm { A } \cup \mathrm { B } )$

• A) \(\frac { 7 } { 18 }\)
• B) \(\frac { 11 } { 54 }\)
• C) \(\frac { 29 } { 54 }\)
• D) \(\frac { 7 } { 27 }\)

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Definitions:

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the bond's face value.

Market Rate

The prevailing interest rate available in the marketplace for investments of a similar nature and risk.

Premium

The amount by which the price of a financial instrument or commodity exceeds its face value or market value respectively.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the price paid for the use of a lender's money.