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Derive the probability distribution of the 1-year HPR on a30-year U.S. Treasury bond with an 4.0% coupon if it is currentlyselling at par and the probability distribution of its yield tomaturity a year from now is as follows: (Assume the entire 4.0%coupon is paid at the end of the year rather than every 6 months.Assume a par value of $100.) (Leave no cells blank - be certain toenter "0" wherever required. Negative values should be indicated bya minus sign. Do not round intermediate calculations. Round youranswers to 2 decimal places. Omit the "$" & "%" signs in yourresponse.)EconomyProbabilityYTMPriceCapital GainsCoupon InterestHPRBoom0.3010.0%Normal Growth.0.408.0%Recession0.306.0%Please fill in the rest.
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