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can you please explain how to calculate each of the components from the table please? Derive the probability distribution of the 1-year HPR on a

can you please explain how to calculate each of the components from the table please?

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Derive the probability distribution of the 1-year HPR on a 30-year U.S. Treasury bond with an 8% coupon if it is currently selling at par and the probability distribution of its yield to maturity a year from now is as shown in the table below. (Assume the entire 8% coupon is paid at the end of the year rather than every 6 months. Assume a par value of $100.) (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Economy Probability YTM Price Capital Gain Coupon Interest HPR Boom .20 11.0 % $ 100.00 $ 3.00 Normal Growth 0.50 8.0 % 100.00 0.00 8.00 % Recession 0.30 7.0 % 100.00 8.00 %

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