The probability that at least one of the bonds will be called is closest to:
We calculate the probability that at least one of the bonds will be called using the addition rule for probabilities:
P(A or B) = P(A) + P(B) – P(A and B), where P(A and B) = P(A) × P(B) P(A or B) = 0.80 + 0.30 – (0.8 × 0.3) = 0.86
P(A or B) = P(A) + P(B) – P(A and B), where P(A and B) = P(A) × P(B)
P(A or B) = 0.80 + 0.30 – (0.8 × 0.3) = 0.86
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