Auniopa bond service has tree ritng categories A. B and C) Suppose that in the past year, of the municipal tonds issuod thoughout a country, 20 were rated A, 10% wee rated B and 20% were rated C. Of the muniipal bonds caind A, 40 were issued try cbes 40% by sutubs, nd 20% by rural areas Of the municipal bonds rated B. 00% were issued by cites 10% by suturbs and 30% by rurat areas. Of the municipal boods rated C 00 wre ued by cites % by uburbs and % by rural aas Compiete (a) theough (0) below ala new muniopal bond is to be issued by a city what is the probablity that t wil receive an A rating? Round to trvee decinal places as needed) b. What proportion of municpal bonds are issued by otbes? (Round to three decimal piaces as needed.)
Auniopa bond service has tree ritng categories A. B and C) Suppose that in the past year, of the municipal tonds issuod thoughout a country, 20 were rated A, 10% wee rated B and 20% were rated C. Of the muniipal bonds caind A, 40 were issued try cbes 40% by sutubs, nd 20% by rural areas Of the municipal bonds rated B. 00% were issued by cites 10% by suturbs and 30% by rurat areas. Of the municipal boods rated C 00 wre ued by cites % by uburbs and % by rural aas Compiete (a) theough (0) below ala new muniopal bond is to be issued by a city what is the probablity that t wil receive an A rating? Round to trvee decinal places as needed) b. What proportion of municpal bonds are issued by otbes? (Round to three decimal piaces as needed.)
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.5P
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Transcribed Image Text:Amuniopa bond service has three ratng categories (A. and C) Suppose that in the past year, of the municipal tond issued thoughout a country, 20 were rated A 10 were rated B and 20% were rated C Of Dhe municipal bonds
raled A, 40% were issued ty ctes 40% by sububs, and 20% by rural areas Cr the municipal bonds rated B. 0% were issued by cites 10% by suturbs and 20 by nurat areas. Or the municipal bonds rated C, 00 were ued by
cties by uburbs and 5% by rural aas Complete (a) theough (o) below
aifa new muniopal bnd is to De issued by a city, what is the probablity that it wil receive an A rating
20 Round to trvee decimal places as needed)
b. What proportion of municipal bonds are ssued by oties?
(Round to thvee decimal places as needed)
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