Question 7 Please describe what the difference is between normal and lognormal volatility. If a bond has a yield volatility of 100 bps and a duration of 20, what can you tell me about the likelihood that its price is 80% in 1-year's time? (You don't need an exact number here - but walk me through what the numbers are telling you). What other price has this same probability? If the volatility increases to 150 bps, is it more or less likely that the bond trades below 80% in 1-year's time? Why? Question 7 Please describe what the difference is between normal and lognormal volatility. If a bond has a yield volatility of 100 bps and a duration of 20, what can you tell me about the likelihood that its price is 80% in 1-year's time? (You don't need an exact number here - but walk me through what the numbers are telling you). What other price has this same probability? If the volatility increases to 150 bps, is it more or less likely that the bond trades below 80% in 1-year's time? Why