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You own a $ 1 , 0 0 0 par zero - coupon discount bond that has 5 years to maturity. You plan on selling

You own a $1,000 par zero-coupon discount bond that has 5 years to maturity. You plan on selling the bond in one year and believe that the interest rate next year will have the following probability distribution: a. What is your expected price when you sell the bond? & b. What is the standard deviation of the bond's price?
Probability (Interest Rate)
.10(6.60%)
.20(6.75%)
.40(7.00%)
.20(7.20%)
.10(7.45%)

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