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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
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% 1
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