Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Felicia is evaluating the risk of a U.S. Treasury discount bond. The price of the bond is $9106. 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 $9106. 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)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started