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THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The life of a new type of light bulb is uniformly distributed between 1,200 and 1,600 hours.
-The probability is 70% that a randomly-selected light bulb will last at least how long.
Zero-Coupon Bond
A zero-coupon bond is a type of bond that does not pay periodic interest but is issued at a significant discount to its face value and redeemed for its full face value at maturity.
Yield To Maturity
The total return anticipated on a bond if it is held until its maturity date, accounting for interest payments and its current market price.
Rate Of Return
The accumulation or declination in an investment's value over an agreed period, indicated as a percentage of the investment’s beginning price.
Coupon Bond
A bond that pays the holder a fixed interest payment (coupon) at regular intervals until maturity, when the principal amount is reimbursed.
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