Colby Inherited a Small Savings-Bond Portfolio Consisting of Four $1,000

question 252

Short Answer

Colby inherited a small savings-bond portfolio consisting of four $1,000 face-value Canada Savings Bonds and six $1,000 face-value Ontario Savings Bonds. In the first year, the portfolio earned $438 interest. At the end of the first year, Colby cashed in one of the Canada Savings Bonds and two of the Ontario Savings Bonds. In the following year, the remaining bonds earned $306 interest. What annual rate of interest did each type of bond earn?

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Definitions:

Variability

The extent to which data points in a dataset differ from each other and from their average value, indicating the spread or dispersion in the dataset.

True Score

In psychometrics, the actual score that accurately reflects the tested variable or trait in the absence of measurement errors.

Reliability

The degree to which an assessment tool produces stable and consistent results over multiple administrations under the same conditions.

Construct Validity

The extent to which a test or instrument accurately measures the theoretical construct or concept it is intended to assess.