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.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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