Question 1 a) Consider a 20-year bond with face value $1,000 and a coupon rate of 9% paid annually. The bond is currently selling at par (i.e., at $1,000). The probability distribution of its yield to maturity (YTM) a year from now is given in Table 1 below: Table 1 State of the Economy Probability YTM Boom 0.20 15% Normal Growth 0.50 9% Recession 0.30 8% Derive the probability distribution of the 1-year holding period return (HPR) on this 20-year bond, and calculate the expected return of the bond. Explain your result. [12 marks] b) Explain how the coupon rate, the current yield, the yield to maturity, and the bond price are related. [8 marks] anda-20....pdf