Of the Last 100 Customers Entering a Computer Shop, 25

question 97

Multiple Choice

Of the last 100 customers entering a computer shop, 25 have purchased a computer. If the classical method for computing probability is used, the probability that the next customer will purchase a computer is

• A)0.25
• B)0.50
• C)1.00
• D)0.75

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Definitions:

Coupon

Represents the interest payment made to bondholders annually or semi-annually, expressed as a percentage of the bond's face value.

Yield To Maturity

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

Face Value

The nominal or dollar value printed on a bond or other financial security, representing the amount due at maturity.

Coupon Rate

The annual interest rate paid by a bond, expressed as a percentage of the face value.