1-year HPR on a 30-year U.S. Treasury bond with a coupon of 4.0% if it is curr par and the probability distribution of its yield to maturity a year from now is as shown in the table below. (Assume the coupon is paid at the end of the year rather than every 6 months. Assume a par value of $100.) (Leave no cells blank enter "0" wherever required. Negative values should be indicated by a minus sign. Do not round intermediate cale your answers to 2 decimal places.) Economy Probability Coupon Interest YTM Price Capital Gain HPR Boom 0.25 10.0 % Normal Growth 0.50 9.0%
1-year HPR on a 30-year U.S. Treasury bond with a coupon of 4.0% if it is curr par and the probability distribution of its yield to maturity a year from now is as shown in the table below. (Assume the coupon is paid at the end of the year rather than every 6 months. Assume a par value of $100.) (Leave no cells blank enter "0" wherever required. Negative values should be indicated by a minus sign. Do not round intermediate cale your answers to 2 decimal places.) Economy Probability Coupon Interest YTM Price Capital Gain HPR Boom 0.25 10.0 % Normal Growth 0.50 9.0%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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