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The daily revenue from the sale of fried dough at a local street vendor in Boston is known to be normally distributed with a known standard deviation of $120. The revenue on each of the last 25 days is noted, and the average is computed as $550. Construct a 95% confidence interval for the population mean of the sale of fried dough by this vendor.
Coupon Rate
The interest rate per year on a bond, expressed as a fraction of its face value.
Par-Value
The face value of a bond or stock, representing the amount that the issuer agrees to repay at maturity or the nominal value of a share, respectively.
Duration
A measure of the sensitivity of a bond's price to changes in interest rates, essentially a weighted average of the time until cash flows are received.
Coupon Bond
A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until the maturity date, when the principal amount is repaid.
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