QUESTION IZ According to a credit rating agency, Moody's, the chance that a D-graded municipal bond defaults in a given year is 109%. Suppose that the default of one municipal bond is independent from other bonds. Use this information to answer Questions 12 to 16 below. Suppose that a hedge fund company currently owns 20 (all different) D-grade municipal bonds. What is the probability that no bond will default in a given year? a- 0.121 O b- 0.358 O C. 0.089 O d- 0.189 QUESTION 13 Suppose that a hedge fund company currently owns 20 (all different) D-grade municipal bonds. What is the probability that 3 or fewer bonds will default in a given year? 0 8- 0.984 O b-0.929 O C. 0.867 O d- 0.948 QUESTION 14 Suppose that a hedge fund company currently owns 20 (all different) D-grade municipal bonds. What is the probability that 4 or more bonds will default in a given year? a- 0.016 O b- 0.052 O C 0.121 O d-0.133 QUESTION 15 What is the expected number of bonds that default out of 20 D-grade bonds? O a- 1.6 O b- 1 OC.2QUESTION 16 What is the standard deviation of the number of bonds that default out of 20 D-grade bonds? O a- 2.012 O b- 1.482 O C 0.975 O d- 1.342