A bond have just made a coupon payment has a face value of £1.0 and its date of redemption is 2.5 years. It pays a coupon every 6 mon. Its annual coupon is 6.0% ( semi-annual coupon is 3.0%)

(a) When an opinion poll calls residential telephone numbers at random, only 20% of the calls reach a person.

You watch the random digit dialing machine make 15 calls. X is the number that reach a person.

• (b) When an opinion poll calls residential telephone numbers at random, only 20% of the calls reach a live

person. You watch the random digit dialing machine make calls. Y is the number of calls until the first live

person answers.

Step-by-step explanation: