Analysts estimate that one year from today, a bond has a probability of 40 percent of being priced at $950 and a probability of 60 percent of being priced at $1,050. The bond is also callable at any time at $1,010. What is the expected value of this bond in one year

Expected value of bond = $986

Explanation:

given data

probability = 40 percent

priced = $950

probability = 60 percent

priced = $1050

Callable price bond = $1010

solution

we get here Expected value of  bond in one year that is express as

Expected value of bond = (Probability × Price of bond) + (Probability ×  Callable price bond)   1

put here value and we get

Expected value of bond =  (0.4 × $950) + (0.60 × $1010)

solve it we get

Expected value of bond = $986

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer; standing committee;