The Mean and the Standard Deviation of an Exponential Distribution

question 86

True/False

The mean and the standard deviation of an exponential distribution are equal to each other.

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Definitions:

Yield To Call (YTC)

The rate of interest earned on a bond if it is called. If current interest rates are well below an outstanding callable bond’s coupon rate, the YTC may be a more relevant estimate of expected return than the yield to maturity, since the bond is likely to be called.

Yield To Maturity (YTM)

The total return anticipated on a bond if the bond is held until its maturity date, taking into account both interest payments and the difference between the bond's current market price and its face value.

Annual Coupon Rate

A bond's yearly interest payment to its holders, expressed as a percentage of the bond's face value.

Maturity

The specified time at which the principal amount of a bond or loan is due to be paid back to the lender.