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  3. derive the probability distribution of the 1-year

Derive the probability distribution of the 1-year HPR on a 30-year U.S. Treasury bond with...

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Accounting

Derive the probability distribution of the 1-year HPR on a 30-year U.S. Treasury bond with a 3.5% coupon 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.)
Note: 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.
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