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6) A 30-year U.S. Treasury bond with an annual coupon rate of 8.0% is currently trading at par value (face value = $100). Calculate its

6) A 30-year U.S. Treasury bond with an annual coupon rate of 8.0% is currently trading at par value (face value = $100). Calculate its price 1-year from now and its HPR in the following three states of the economy.

Economy	Probability	YTM	Price	HPR
Boom	0.2	11%
Normal Growth	0.5	8%
Recession	0.3	7%

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