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Blackjack, or twenty-one as it is frequently called, is a popular gambling game. A player is dealt two cards. Face cards (jacks, queens, and kings) and tens have a point value of 10. Aces have a point value of 1 or 11. A 52-card deck contains 16 cards with a point value of 10 (jacks, queens, kings, and tens) and four aces.
a. What is the probability that both cards dealt are aces or 10-point cards?
b. What is the probability that both of the cards are aces?
c. What is the probability that both of the cards have a point value of 10?
A discount bond has a face value of $10,000 and promises repayment at the end of 15 years and has a market price of $3541. What is its effective yield?
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