Which Sequence of Quoted Bond Yields Most Appropriately Matches the Following

question 61

Multiple Choice

Which sequence of quoted bond yields most appropriately matches the following sequence of bonds: U.S.Treasury bond,corporate bond (high quality) ,and municipal bond (high quality) ?

• A)6%,8%,and 10%
• B)8%,6%,and 10%
• C)8%,10%,and 6%
• D)10%,8%,and 6%

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Definitions:

P(x < a)

This notation represents the probability that a random variable x is less than some value a.

Random Variable

A variable whose values depend on outcomes of a random phenomenon.

P(x < a)

This denotes the probability that the random variable X takes on a value less than a specific value a.

P(x = a)

The probability of a random variable x taking on a specific value a.