Question: Graph the probability distribution for the 5 scenarios during the next year for the 10-year zero coupon Treasury Bonds. Return on a 10-Year Zero Coupon

  1. Graph the probability distribution for the 5 scenarios during the next year for the 10-year zero coupon Treasury Bonds.

Return on a 10-Year Zero Coupon Treasury Bond

Scenario

Probability

Return

Worst Case

0.15

-18%

Bad Case

0.25

-3%

Most Likely Case

0.35

6%

Good Case

0.15

19%

Best Case

0.10

28%

Note: The total in the Probability column must equal 1.

In an example from my text, it has a bar chart and a bell curve graph.

Thank you.

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