By convention in the bond market, the monthly yield is compounded for six months and then annualized using the bond-equivalent method.
6 -month compounded yield = (1 + 0.00325)6 - 1 = 0.01966, or 1.966%, Annualized yield = 1.966 x 2 = 3.93%

The fraction of observations which are less than zero equals 16% i.e. the fraction of observations which are less than (mean - 10) equals 16% (given). Since the distribution is symmetrical about the mean, this implies that the fraction of observations which are more than (mean + 10) also equals 16%. Thus, the fraction of the observations lying between 0 and 20 equals 1-0.16-0.16 = 0.68. For a bell-shaped, symmetrical frequency distribution, 68% of the observations lie within one standard deviation of the mean. Hence, the standard deviation of the distribution equals 10. The coefficient of variation is then equal to standard deviation/mean = 10/10 = 1.

The costs include commissions, bid-ask spreads, and order price impacts. Transaction costs are lower in transparent markets than in opaque markets because traders can more easily determine market value and more easily manage their trading in transparent markets.

When interest rates are significantly higher than the coupon rate, there is little chance that the call option on the bond will be exercised. The duration on a coupon bond is only slightly decreased through an option adjustment, because the option is almost worthless.

A company could have negative cash flow from operations in the same year in which it had a positive net income if it had a substantial increase in accounts receivable and inventory due to the company's growth in sales. An increase in accounts receivable represents revenue not yet collected in cash. An increase in inventory represents a cash outflow that is not an operating expense.