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Hello I need help to solve the task

At the start of the year a bond portfolio consists of 2 bonds each worth 100$.At the end of the year if a bond defaults it will be worth 20$.If it does not default the bond will be worth 100$. The probability that both bond default is 20%.The probability that neither bond defaults is 45%. What is the mean of the year end portfolio value??

I know the answer is 140 $ but i don`t know how to calculate. Please help and explain.

Regards

dymny

At the start of the year a bond portfolio consists of 2 bonds each worth 100$.At the end of the year if a bond defaults it will be worth 20$.If it does not default the bond will be worth 100$. The probability that both bond default is 20%.The probability that neither bond defaults is 45%. What is the mean of the year end portfolio value??

I know the answer is 140 $ but i don`t know how to calculate. Please help and explain.

Regards

dymny

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