Home / Questions / Derive the probability distribution of the 1year HPR on a 30year US Treasury bond with an ...
Derive the probability distribution of the 1-year HPR on a 30-year U.S. Treasury bond with an 3.0% coupon if it is currently selling at par and the probability distribution of its yield to maturity a year from now is as follows:
(Assume the entire 3.0% coupon is paid at the end of the year rather than every 6 months. Assume a par value of $100.)
(Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" & "%" signs in your response.)
| ECONOMY | PROBABILITY | YTM | PRICE | CAPITAL GAIN | COUPON INTEREST | HPR |
| BOOM | 0.30% | 10% | $___? | $___? | $____? | ___% |
| NORMAL GROWTH | 0.60% | 8% | $____? | $____? | $____? | ___% |
| RECESSION | 0.10% | 7% | $___? | $____? | $____? | ___% |
Apr 09 2020 Read more Less More
Overview: The objective for this assignment is to become competent in designing, planning and evaluating a new health promotion initiative (while you may refer to previou...
May 15 2020Evaluate the following integrals: Find f(t) iff(t)=2nroF(w)eMtdw and F(w)=mm)p6(w). 4+jw 9+jw 3.
Jul 16 2020In 2010, Azimuth Company purchased a small business for $500,000. The market value of the business's assets were $850,000, and the market value of the liabilities we...
Dec 19 2019Orbit Company issued a $60,000, 7%, 10-year bond payable at 96 on January 1, 2018. Interest is paid semiannually on January 1 and July 1 Read the requirements. Requiremen...
Feb 11 2020The partnership agreement of Alix, Gise, and Bosco provides for the following income ratio: (a) Alix, the managing partner, receives a salary allowance of $107600, (b) ea...
Feb 08 2020What did the wall represent? Why would its fall symbolize an end to the Cold War? Aside from Gorbachev, who do you think Reagan was addressing in this speech and why?Look...
Feb 03 2020Which of these is not a density-dependent factor that could act to limit population growth as population size increases? (A) Waste accumulation (B) Fire (C) Inhibit...
Mar 20 2018Would you be able to supply one graph to accompany the survey analysis?
Feb 06 2020In the figure, shaft AB transmits power to shaft CD through a set of bevel gears contacting at pointE. The contact force at E on the gear of shaft CD is determined to be ...
Jun 24 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.
