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Derive the probability distribution of the 1-year HPR on a 30-year Canadian Treasury bond with an 4.0% coupon if it is currently selling at par

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Derive the probability distribution of the 1-year HPR on a 30-year Canadian Treasury bond with an 4.0% coupon if it is currently selling at par and the probability distribution of its yield to maturity a year from now is as follows: (Assume the entire 4.0% 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 "O" wherever required. Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. Omit $ sign in your response.) Price HPR Economy Boom Probability 0.10 YTM 9.0% Coupon Interest $ $ % Capital Gain $ $ $ 0.60 8.0% $ % Normal Growth Recession $ $ 0.30 7.0% $ %

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