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please help with price, capital gains and coupon interest on all 3 thank you Derive the probability distribution of the 1-year HPR on a 30-year
please help with price, capital gains and coupon interest on all 3 thank you
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 follows: (Assume the entire 8% coupon is paid at the end of the year rather than every 6 months. Assume a par value of $100.) (Leave no cells blank - be certain to enter "O" wherever required. Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" & "%" signs in your response.) Price Capital Gain $ Coupon Interes Economy Boom Normal Growth Recession Probability 0.20 0.50 0.30 YTM 11.0% 8.0% 7.0% A A A $ AAA ta tATAStep by Step Solution
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