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Use the following information to answer questions 24 – 26. Use 3 decimals. A municipal bond...

  1. Use the following information to answer questions 24 – 26. Use 3 decimals.
    A municipal bond service has three rating categories (A, B, and C). Suppose that in the past year, of the municipal bonds issued throughout the United States, 70% were rated A, 20% were rated B, and 10% were rated C.
  • Of the municipal bonds rated A, 50% were issued by cities, 40% were issues by suburbs, and 10% were issued by rural areas.
  • OF the municipal bonds rated B, 60% were issued by cities, 20% were issued by suburbs, and 20% were issued by rural areas.
  • Of the municipal bonds rated C, 90% were issued by cities, 5% were issued by suburbs, and 5% were issued by rural areas.
  1. What proportion of municipal bonds is issued by cities and are rated C?
    1. 12%
    2. 9%
    3. 35%
    4. 28%
    5. 56%
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