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How did they get this solution (price, prob x price, probx[price-exp price]^2) can I get this step by step 4. You own asi000 zero-coupon bond

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image text in transcribedHow did they get this solution (price, prob x price, probx[price-exp price]^2) can I get this step by step
4. You own asi000 zero-coupon bond that has five years of remaining maturity. You plan on selling that bond in one year and believe that the required yield next year will have the following probability distribution: Probability Required Yield 6.75 a. What is your expected price when you sell the bond? b. What is the standard deviation of the bond price? Page 1 of 2 Prof. Samuel Jung Solution: Brion !roh Prime Prob x (Price Exp. Price)

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