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  3. undefined jessica owns a $1,000-par zero-coupon b

undefined Jessica owns a $1,000-par zero-coupon bond that has five years of remaining maturity....

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Jessica owns a $1,000-par zero-coupon bond that has five years of remaining maturity. She plans on selling the bond in one year and believes that the required yield next year will have the following probability distribution: Probability Required Yield 0.2 6.50% 0.2 6.80% 0.3 7.20% 0.3 7.60% What is the expected price of the bond at the time of sale

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