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Felicia is evaluating the risk of a U.S. Treasury discount bond. The price of the bond is $8142. The bond matures in 3 years and
Felicia is evaluating the risk of a U.S. Treasury discount bond. The price of the bond is $8142. The bond matures in 3 years and Felicia knows with certainty that she will receive the full face value of $10,000 since the U.S. Treasury has never defaulted on a bond. What is the standard deviation (in %) of the return on the bond? Round your answer to at least 2 decimal places. (e.g. 12.34567% should be entered as 12.35)
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