You invest 27,000 in a corporate bond selling for $900 per $1000. Over the coming year, the bond will pay interest of $75 per $1000 of par value. The price of the bond at years end will depend of the level of interest rate prevailing at that time. You construct the following scenario analysis:

Interest	Probability	Year-End Bond Price
High	0.2	$840
Unchanged	0.5	915
Low	0.3	975

Your alternative investment is a T-bill that yields a certain rate of 5%. Calculate the HPR for each scenario, the expected rate of return, and the risk premium on your investment. What is the expected year-end dollar value of your investment? (9 Points)