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Problem 5 - 8 Derive the probability distribution of the 1 - year HPR on a 3 0 - year U . S . Treasury
Problem Derive the probability distribution of the year HPR on a year US Treasury bond with a coupon of if it is currently selling at par and the probability distribution of its yield to maturity a year from now is as shown in the table below. Assume the entire coupon is paid at the end of the year rather than every months. Assume a par value of $Leave no cells blank be certain to enter O wherever required. Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to decimal places. Answer is complete but not entirely correct. tableEconomyProbability,YTMrice,tableCapitalGaintableCouponInterestHPRBoom$times $times g Vtimes tableNormal Growthtimes xxRecession V
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Derive the probability distribution of the year HPR on a year US Treasury bond with a coupon of if it is currently selling at par and the probability distribution of its yield to maturity a year from now is as shown in the table below. Assume the entire coupon is paid at the end of the year rather than every months. Assume a par value of $Leave no cells blank be certain to enter O wherever required. Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to decimal places.
Answer is complete but not entirely correct.
tableEconomyProbability,YTMrice,tableCapitalGaintableCouponInterestHPRBoom$times $times g Vtimes tableNormal Growthtimes xxRecession V
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