Types of bonds


Warren Buett is considering investing $1000. His nancial advisor show him 2 types of bonds A and B. The A bonds have 6% annual yield with a default rate of 1%. The B bonds have an 8% annual yield with a default rate of 5%. (If the bond defaults, the $1000 is lost.) Which bond should Mr. Buett choose? Show All work

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Basic Statistics: Types of bonds
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