Question: The last guy answered this question wrong please answer this correct, fi you cant don't take it, simple!!!! Problem 5-8 Derive the probability distribution of

The last guy answered this question wrong please answer this correct, fi you cant don't take it, simple!!!!

Problem 5-8 Derive the probability distribution of the 1-year HPR on a 30-year U.S. Treasury bond with a coupon of 3.5% if it is currently selling at par and the probability distribution of its yield to maturity a year from now is as shown in the table below. (Assume the entire 3.5% coupon is paid at the end of the year rather than every 6 months. Assume a par value of $100.) (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Economy Boom Normal Growth Recession Probability 0.25 0.55 0.20 YTM 8.0 % 6.0 % 4.0 % Price Capital Gain Coupon Interest HPR % % %

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