
Explanation:
To find the probability that the price is between $80 and $90, we need to integrate the probability density function from 80 to 90.
or $17%$
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Q.29 A zero-coupon bond with a notional value of USD100 and price x has the following probability density function:
Determine the probability that the price of the bond is between $80 and $90 inclusively.
A
0.0017
B
81.00%
C
17%
D
64.00%
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