Yields on lottery bonds
type: Item
instance of: scholarly article
title: Yields on lottery bonds
zbMATH Open document ID: 0637.62100
DOI: 10.1016/0167-6687(88)90102-3
author: Henrik Ramlau-Hansen
published in: Insurance Mathematics \& Economics
publication date: 1988-01-01T00:00:00Z
review text: Lottery bonds are bonds which are redeemed by lottery drawings. The yield realized by an investor holding only part of an issue of lottery bonds is, therefore, a random variable. This paper shows that the internal rate of return on an investment in lottery bonds as well as the periodic yields realized during the different interest periods are asymptotically normally distributed. The results are used to determine the number of bonds to be purchased to ensure a realized yield close to the expected yield rate.
Mathematics Subject Classification ID: 62P05
Mathematics Subject Classification ID: 62E20
zbMATH DE Number: 4039085
zbMATH Keywords: martingale difference arrays
zbMATH Keywords: convergence in distribution
zbMATH Keywords: asymptotic normality
zbMATH Keywords: internal rate of return
zbMATH Keywords: investment in lottery bonds
zbMATH Keywords: periodic yields
MaRDI profile type: Publication
full work available at URL: 0167-6687(88)90102-3
OpenAlex ID: W2082365937
cites work: Q3773148
cites work: Q5824921
cites work: Q3906237
cites work: Q5615180
cites work: Q5256522
description: scientific article; zbMATH DE number 4039085