Chapter 4 Notes

CH4
Counting Rule: mn 
Sampling with replacement: N^n
Sampling without replacement: NCn
Combination formula: NCn = N!/n!(N-n)!
General Law of addition: P (X∪Y) = P(X) + P(Y) – P (X∩Y)
Special Law of addition: P (X∪Y) =P(X) +P(Y)
General Law of multiplication: P (X∩Y) = P(X) ▪P (YIX) = P(Y) ▪P (XIY)
Special Law of multiplication: P (X∩Y) = P(X) ▪P(Y)
Law of conditional probability: P(XIY)= (P (X∩Y))/(P(Y))=(P(X)▪P(YIX))/(P(Y))
Bayes’ rule: 
Experiment: Process that produces outcomes
Event:
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Exam

Consider the following two bond issues.Bond A: 5% 15‐year bond. Bond B: 5% 30‐year bond. Neither bond has an embedded option. Both bonds are trading in the market at the same yield. Which bond will fluctuate more in price when interest rates change? Why?All other factors constant, the longer the maturity, the greater the price change when interest rates change. So, Bond B is the answer. What is the quarterly coupon payment for a $1,000 par value bond with a 5.25% coupon rate? $1,000 x 0.0525

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Three towers

The civil war: political and international dimension of the conflict. The consequences of the conflict. (TEACHER)

1 .- Political developments during the war

1.1 .- The Republican Spain

  1. Dismantling of the State and Social Revolution (July-September 1936)

The military uprising showed all the differences and tensions in the Popular Front, unions and labor organizations called for the government’s delivery of weapons to defend the Republic, but Casares Quiroga (Prime Minister) refused. A new government,

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