Question: Need to know how to do it in Excel! Bond Return 4: You bought a $10,000-face 1%-coupon bond that had four years of remaining maturity

Need to know how to do it in Excel!

Need to know how to do it in Excel! Bond Return 4:

Bond Return 4: You bought a $10,000-face 1%-coupon bond that had four years of remaining maturity one year ago. Rates were 5%. You sold the bond today and lost 6% on your entire bond investment. Assume you demanded an expected return of 6% to hold this asset. You thought interest rates would be either 4% or 6% today. What probability did you assume for rates being 4%? (Round to nearest whole percent) Bond Return 5: You bought a $10,000-face 1%-coupon bond that had four years of remaining maturity one year ago. Rates were 5%. You sold the bond today and lost 6% on your entire bond investment. You thought interest rates would be either 4% with 50% probability or 6% today. What was your expected return? (Round to nearest whole percent) Bond Return 6: You bought a $10,000-face 1%-coupon bond that had four years of remaining maturity one year ago. Rates were 5%. You sold the bond today and lost 6% on your entire bond investment. You thought interest rates would be either 4% with 50% probability or 6% today. What was your standard deviation of your expected return? (Round to nearest whole percent) Answer 1: 8582 Answer 2: 7967 Answer 3: E Answer 4: 66% Answer 5: 5% Answer 6: 3% Bond Return 4: You bought a $10,000-face 1%-coupon bond that had four years of remaining maturity one year ago. Rates were 5%. You sold the bond today and lost 6% on your entire bond investment. Assume you demanded an expected return of 6% to hold this asset. You thought interest rates would be either 4% or 6% today. What probability did you assume for rates being 4%? (Round to nearest whole percent) Bond Return 5: You bought a $10,000-face 1%-coupon bond that had four years of remaining maturity one year ago. Rates were 5%. You sold the bond today and lost 6% on your entire bond investment. You thought interest rates would be either 4% with 50% probability or 6% today. What was your expected return? (Round to nearest whole percent) Bond Return 6: You bought a $10,000-face 1%-coupon bond that had four years of remaining maturity one year ago. Rates were 5%. You sold the bond today and lost 6% on your entire bond investment. You thought interest rates would be either 4% with 50% probability or 6% today. What was your standard deviation of your expected return? (Round to nearest whole percent) Answer 1: 8582 Answer 2: 7967 Answer 3: E Answer 4: 66% Answer 5: 5% Answer 6: 3%

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